Estate & Managing Agents - What's In A HIP part 2

The required local property Searches are usually provided by one of a number of sources including the relevant local authority or a private search company.

While a searcher should make every effort to obtain all the relevant information required to complete a search, if any of the answers are missing, an insurance policy should be included to protect the buyer against any problems with the property or the area that the missing answer might have revealed. 

The Drainage and Water Search will generally be provided by the relevant regional water company.

The Pack may include forms completed by the seller concerning a range of matters relating to the property. The Home Use Form [or the Seller’s Property Information Form] should include information on boundaries, notices, guarantees, services, sharing with neighbours, arrangements and rights, occupiers, changes to the property and planning and building control matters. 

There may also be a Home Contents Form [or Fixtures, Fittings and Contents Form] listing items that are included or excluded from the sale or which are subject to negotiation. 

The HIP may also contain a Legal Summary, which would normally be at the front of the Pack. 

The Legal Summary is a legal adviser’s view of the contents of the Pack and should identify any issues that a potential buyer may wish to take into consideration when purchasing the property.  Flats and maisonettes are usually sold Leasehold. 

The important things to look for are: 

• The Lease sets out the legal rights and duties of the leaseholder and landlord and the number of years the leaseholder is entitled to the property.

• Details of the Ground Rent and the Service Charges payable for the property, covering repairs, maintenance and improvements to the building and shared parts.

The Pack may also include information on how sellers can seek Redress from their Pack provider (and provider(s) of any element of the Pack).

This reinforces the importance of dealing with reputable providers of information who are members of independent redress schemes.

Estate agents should note that this section is not a substitute for legal advice.