HIPs needed for shared ownership sales
1st May 2008
It’s now nearly a year since Home Information Packs (HIPs) were introduced but they are still raising questions among people buying and selling homes.
The Department for Communities and Local Government regularly issues statements clarifying any areas of uncertainty.
The Department recently confirmed that HIPs are needed when a home is being sold on shared ownership terms. This would not apply if the property was being sold to a sitting tenant as no marketing would have taken place and the property would not be conveyed with vacant possession.
The statement says: “However, if it is an ordinary open market sale on shared ownership terms then a HIP would be needed unless some other exception applied.”
HIPs were first introduced last August for sales of homes of four bedrooms or more. In December, they were extended to homes of all sizes. As Peter Pownall, head of David Phillips and Partners’ conveyancing department notes, it has not been an easy birth. “HIPs have caused unnecessary confusion and over- complicated the already stressful process of buying and selling homes. We lawyers have to work hard to keep on top of all the changes and new press releases. It would be nigh on impossible for the layman or estate agent to do it without specialist knowledge.”
Peter recommends seeking legal advice as early as possible. “As this latest government press release shows, things are changing all the time,” he says. “Seeking advice from a solicitor before marketing your home is the only way to ensure you’re not going to fall foul of the rules and pay later.”
Please contact Peter Pownall on 0800 027 7870 if you would like more information about HIPs or any aspect of buying and selling a home.