HIP Time Constraints and Conveyancing

September 24th, 2008

Every non-exempt property in England and Wales is required to be accompanied by a Home Information Pack, or HIP, on the day it is first marketed. The seller is responsible for the payment and provision of the Pack and usually relies on the conveyancing service or solicitor to gather the necessary documents in a timely fashion. There are some time constraints to the documents that are included and to the pack itself but they shouldn’t prove too restrictive in most cases.

Some of the legal documents need to be three months old or newer when the property is first marketed. In all cases, the contents of the HIP must be no older than twelve months old. Because the HIP is created just prior to the marketing of a house and takes approximately one to two weeks to complete this shouldn’t cause any problems in the sale process.

Once a house is on the market, the HIP remains in place until either the property is sold or it is taken off the market. If a property is taken off the market but put back on within twelve months, the same HIP can be used negating the need to pay for a new one.

A lot of the documents are time sensitive to the buyer and become useless after a period of time. However, the seller is not actually responsible for the provision of more up to date documents as long as they have met the requirements mentioned above.

Conveyancing Basics

September 16th, 2008

Conveyancing a necessary step in the buying and selling of a property. At its most simplistic, it ensures that the buyer receives what they have been told they will receive. While it has typically been conducted by solicitors or local law firms, conveyancing is really only a quasi-legal process that requires minimal legal knowledge but a reasonable amount of research and administrative work.

A conveyancing service ensures that their aspect of the house buying process runs smoothly and as quickly as possible. While the process could theoretically be completed in a matter of two or three days, the various stages need to be completed in synchronisation with the rest of the purchase so a minor delay in any area could cause similar delays throughout the process. Generally, conveyancing lasts two to three months throughout the purchase.

The opening of the conveyancing market has ensured that consumers have a greater range of choice in the service and type of service they can use. It’s no longer necessary to rely on a conveyancing solicitor and specialist conveyancers and conveyancing firms have not only provided more competition in the industry but have subsequently improved service levels and decreased prices.

Simply opting for the cheapest conveyancing service might not be the preferred option however. Because the conveyancer deals with a number of aspects that are legal requirements in the house purchase, a delay caused by the conveyancer can cause a delay before completion and can even cause the entire purchase to fall through.

Local Authority Searches And The Conveyancing Process

September 16th, 2008

A major part, and an important part, of conveyancing is the conducting of local authority searches. These searches will usually attract a charge made by the local authority, which will in turn be included as one of the disbursements levied by your conveyancing solicitor or conveyancer. A local search conducted for conveyancing processes is a very specific search and for a little extra financial outlay it is possible to get a more thorough and informative search conducted.

Local authorities all hold details of planned projects and developments for their region. A standard local authority search will turn up details of any proposed development that falls within the boundary of a specific property. It doesn’t list developments that are due to begin anywhere outside those boundaries no matter their proximity.

A separate planning search enables the buyer of a property to determine whether any developments are scheduled on neighbouring and nearby properties. Obviously, these can have a major impact on a property and for the £20 or so extra it can save some real heartache in the long run. This local search will not be included in the conveyancing service or fee, however, and you should request it separately from your conveyancer.

Local searches range in cost from authority to authority and need to be a part of the conveyancing process. You should ensure that the cost is included as part of the list of disbursements that came with your conveyancing quote to ensure that you know exactly what you are paying for and to ensure that you aren’t hit with a surprise charge at the end of the process.

Avoiding Potential Hidden Costs In Conveyancing

September 8th, 2008

Choosing a conveyancing solicitor or conveyancer is a more competitive process than it once was. Solicitors were once the only group that could offer conveyancing services and this meant higher prices than were necessary. Because the conveyancing service was viewed as a necessary evil by some local solicitors, it also meant consumers could face a less than favourable service.

Conveyancing is now open to anybody. In fact, you could conduct the conveyancing process on a property yourself, although this is not a recommended approach when considering the implication of mistakes and the affordable conveyancing prices now available.

Depending on the type of conveyancing service you use there will be several aspects to your bill. The conveyancer service fee may be payable by the hour or as a set fee. Furthermore, the set fee may be a one price fits all solution or it could be scaled according to property value, location, and other factors. The most common approach is the scaled fee.

The total fee will also include disbursements and if these aren’t listed as being part of the quote then do ask about them. These are necessary charges that the conveyancer must pay third parties and other organisations or groups throughout the conveyancing process and should be roughly the same from one service to the next.

When requesting quotes, request that they be itemised wherever possible. This should include a list of disbursements because one trick to charge extra is to levy unnecessary or plain false disbursement fees. If something is missing from the quote then ask whether it is included in the bottom line price and if not, how much it will cost. Once you’ve done this you will be able to compare quotes on a like for like basis.

Do You Need A Home Information Pack?

September 3rd, 2008

The Home Information Pack has become a legal necessity for most seller’s of residential property in England and Wales. Sellers in the rest of the UK are not required to offer the Home Information Pack and there are certain exemptions that may mean you do not require a HIP before you can market your property. We do advise that you check with your solicitor or conveyancer before you begin the process to accurately determine whether or not you require a Home Information Pack.

Non-residential property owners are not required to have a HIP for their property. Similarly, mixed sale properties (for example a commercial outlet that includes a flat as part of the property) are also exempt, as are seasonal homes or holiday properties. Sellers of dual use properties where the main use is as a commercial property may be exempt.

If you intend to sell a property and the existing tenants will remain in the house upon sale, then you may not require a Home Information Pack. Sellers with a large portfolio of properties are also often exempt from HIP responsibilities.

The final category of HIP exempt sales is unsafe properties, or those that are marketed for redevelopment or demolition purposes.

The Home Information Pack is a necessity for the majority of sellers in England and Wales. While some exemptions do exist, if you are legally required to have a Home Information Pack then it should be in place from the very first day you start to market your property.