Since the introduction of Home Information Packs in August 2007 a whole new industry has been born and it seems now that a HIP can be obtained from a number of sources some of which have had no connection with the property market in the past.
Sellers should be able to expect a HIP which is compliant with all the regulations and professionally prepared. Therefore a seller should always instruct a solicitor before placing their property on the market. In particular we set out the specific advantages in instructing a solicitor to prepare the HIP:
- The HIP is a legal document which will be relied on by others. The Department of Communities and Local Government has issued detailed and complex regulations specifying precisely how the HIP is to be prepared and what it must contain.
Solicitors have traditionally dealt with legal documents relating to property and are familiar with all aspects of land law.
In asking a solicitor to prepare the HIP clients will have confidence that the HIP complies with all aspects of the law and can be safely used by others.
Estate agents and HIP providers have never dealt with legal documents in the way solicitors advise upon them on a daily basis. - A solicitor will be able to advise clients on the legal aspects of the HIP in way that estate agents and HIP providers cannot.
Although the regulations stipulate what documents are compulsory there are many other documents which can be included in the HIP.
It is these documents which could actually speed up the selling transaction and solicitors can tell clients which documents are the most effective. - Never forget that solicitors are required to have indemnity insurance so that if a client suffers loss because of a solicitor's negligence he will always be compensated.
Estate agents and HIP providers may or may not carry insurance. There is no regulatory authority insisting that they do. - It is important to note that if an estate agent prepares the HIP it will belong to him. If therefore the property does not sell or the client is not satisfied with the estate agent and wishes to instruct another agent the client will have to pay for a second HIP or pay an exit fee from his original estate agent in order to obtain that document.
- Solicitors are regulated by the Solicitors Regulation Authority who monitor solicitors and their firms to make sure that they are complying with the rules and take regulatory action where necessary.
Estate agents and HIP providers are not regulated in this way. - Solicitors will generally provide a HIP at a competitive rate set by the marketplace.
- Solicitors know what documents to add to the HIP to eliminate delays when the property is sold.
It is clearly better to own the HIP from the outset. This can only safely be achieved by instructing a solicitor to prepare it in the first place.
For all these reasons it is clear that although sellers have traditionally instructed estate agents as soon as they decide to sell a property it is now of paramount importance that the first person to consult in the house selling process is not an estate agent but a solicitor.
To order a Home Information Pack online
(Hips for freehold properties in the Coventry area are £248.01 inc Vat and disbursements)
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