Well good afternoon everyone. The time has come for me to start answering some of the questions I am getting asked by clients and others relating to the process of buying and selling in the UK Property Market.
Q What is a HIP?
This is a document required before you can sell a property. It has been imposed on sellers by the Government . The document is now required on all properties that are being sold and contains information that a buyer needs to proceed to purchase the property.
Q Who has to provide a Hip?
The seller of a property is ultimately responsible to purchase the HIP usually through their Lawyer who is best placed to ensure the correct documents are contained in it and that it complies with the relevant legislation. In some cases it is obtained through the selling agent but in my experience this usually delays the selling process as they are unable to provide a compliant HIP to the sellers and Buyers Lawyers. The seller is also responsible to pay for the HIP .
Q What is included in a HIP?
The following documents are usually included
Local Search-Drainage and Water Search-Office Copies of the Sellers Title-Index-Brief details of the property including the sellers name-Energy Performance report. Other documents that can be included but rarely are :- replies to enquiries/property information form-fixtures list and other usual searches
QWhy do I need a HIP and How much does it cost?
In real terms the only reason why a Hip is required is because the Law says so although the only piece of information that is not usually obtained by a Lawyer is the Energy Performance certificate. You must expect to pay upwards of £300.00 for the HIP.
Q If I am provided with a HIP do I need further information?
Whether you are a seller or a buyer the information contained in the HIP is only very basic usually including a personal search which is rarelly acceptable to the buyers Lawyers. You will still need answers to preliminary questions and written details of what is included in the price for the property.
You can see from the above that it is therefore very important that a Specialist Property Lawyer is appointed either before you market your propertyor if you are a Buyer before you finalise your offer to the seller in order that any problems are resolved at the earliest opportunity.
I hope you have found the above informative and I will answer another question tomorrow on Buying to Let