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General
How long are the documents including searches likely to be valid for?
Most Lenders will accept search results that are less than 6 months old although the government regulations are stating that searches should be no more than 3 months old when included within a HIP. It is possible to take Insurance at a nominal cost to verify the contents of the searches beyond those time limits. EPC's are valid for a period of 3 years. In our Platinum Packs including HCR's Home Inspectors confirm that they are happy to give an updated overview to be added onto the report at a nominal cost should the house be unsold for more than 6 months. We trust that once the market improves and sales are negotiated quicker, some of these additional items may not be required as overall speed will be improved.
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Do I need to complete property information forms online?
New TA6 Property Information Form (2nd Edition) and TA7 Leasehold Information Form and a TA10 Fittings and Contents list plan to be available from 6th April 2009. These will supplement the Property Information Questionnaire (PIQ)already included within your Home information Pack.
However, apart from the PIQ these are only authorised documents and do not need to be included within the HIP and Rapidmove have found that many sellers would prefer to complete these forms via their legal team once a buyer has been found and in particular they can base the contents they will include upon the offer received.
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Is there a concern that a buyer may sign a contract in the pack and suggest they have exchanged with us?
The Rapidmove pack will contain a Sale Statement, which will contain details of the type of property, whether it is registered, the owners and how they sell the property and whether it is vacant or occupied. Only when the selling agents and we are certain that the Buyer is genuine, will a paper copy of the Contract be forwarded by the Sellers solicitors or licenced conveyancers to the Buyer’s legal team for their signature in the usual way.
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What if I decide after removing my property for sale that I want to proceed at a later date?
The HIP will not need to be renewed provided that the property is put back on the market within 6 months of its initial marketing, except where a sale falls through where even if more than 12 months has elapsed there is no need to renew as long as the property is back on the market within 28 days of the sale falling through.
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How can I pay for my Pack?
The quickest and most secure way to pay is online using our encrypted PayPal system or by credit card. However, cheques are also acceptable made payable to Rapidmove (UK) Limited. Once your details and payment method has been accepted we can immediately begin the preparation of your pack.
If you are an Estate Agent or Solicitors practice we will have probably discussed with you an upfront payment by cheque or alternatively a monthly fee arrangement.
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What is Title Insurance?
Title Insurance is a product which removes the delays caused by defects in the title which may not have been discovered previously and which may affect the speedy sale of the property. We are currently working with Title Insurers who will enable us to cover each pack for unforeseen defects in the title which may affect or delay the sale or value.
Clearly, not all titles will have problems but some are minor and can be dealt with promptly and efficiently without large additional cost or ongoing delays.
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Why choose Rapidmove?
Not only are we one of the first providers to have produced an electronic HIP, and were part of the Governments Early Adopter Scheme prior to August 2007, we are experienced and independent property professionals who aim to provide a quality pack with outstanding service to our clients. We are well known and trusted by local Estate Agents and Solicitors so you have confidence in our ability to deliver. We are a local firm who value our clients and partners in this enterprise.
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What are the benefits of a HIP from Rapidmove?
Speed, accuracy, control and certainty. You can purchase a pack and take it with you to your chosen agent or advertise the property yourself. We expect our packs to be one of the the best on the market. We also offer a range of options to suit you. These include the type of pack and payment options all geared to your individual requirements or if you are a partnered firm, your business.
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What is an Energy Performance Certificate
This assesses the Energy efficiency of the property for sale, and includes such things as heating, construction, ventilation, insulation.
The Energy Performance Certificate is similar to the colour coded report you might receive on an electrical appliance. It will also advise on how to improve the engergy efficiency of the home by installing cavity wall insulation, loft insulation, energy efficient boilers and radiator thermostats.
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What if I am unsure about what I am leaving as I don't have a buyer yet?
As the Fittings and contents Form is only an authorised document, you do not need to complete this when the property is first marketed and this can be removed from the pack and completed with your legal team once a buyer has been found.
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Home Condition Report
What is the Home Condition Report?
It is an impartial report on the condition and energy efficiency rating of your property. It is similar in length and format to a RICS Homebuyers report. It will draw attention to defects and rates them within 3 categories ie needing urgent attention and likely to affect the saleability or value of the property, matters requiring attention within 6-12 months which could affect the value or fabric of the property and purely cosmetic matter of a minor nature. It will also assess energy efficiency, loft insulation, double glazing for example and will provide guidance of ways in which you can improve the SAP rating.
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What if the HCR down values my property?
The HCR will not contain a valuation of the property only a recommended Buildings Insurance figure for rebuilding. The HCR does not wish to affect the freedom of parties to negotiate based upon demand and property for sale in sought after areas.
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What if the HCR detects problems with my property?
You can then discuss with the Home Inspector and your Agents whether it would be prudent to remedy the problems yourself, prior to sale and achieve the best price for the property or alternatively you could consider obtaining estimates for the works to be carried out and adjust the sale price to reflect the work thereby still obtaining control of the marketing and price. It means that there will be no nasty surprises for you, or for the buyer at a later stage.
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Will my buyer’s Lender accept the contents of the HCR?
The government are discussing with the Council for Mortgage Lenders this scenario but it is generally agreed that as most buyers do not undertake a detailed survey when they buy property the HCR gives the lender more information that it would otherwise obtain. Also, as many Lenders now carry out desktop valuations using their own indices depending on the buyers borrowing (Loan to Value) many Lenders are considering that they would be happy to accept this information. If a buyer requires less than 75% of the value of the property this is more likely to be the case. Some Building Societies may still need to carry out their own limited valuation for their records and to comply with the rules which govern them.
Rapidmove have had limited success with Sellers trialling our Platinum packs and the feedback has been encouraging.
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Home Information Pack
What do I need before I can market my property?
You must have a pack which contains the following items before you or your estate agent can market the property:-
Index, Property Information Questionnaire, Sale Statement, Evidence of the title and plan, Energy Performance Certificate. The searches can follow within 28 days although in most cases these should be to hand in 7. In unregistered cases the title should consist of a SIM and Plan and evidence of the root of title, usually a conveyance on sale. Rapidmove actually like to load many more of the title documents than the standard requirements as this speeds up the acceptance of the title by the buyer's solicitors
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What will a HIP contain?
The regulations now provide that from April 2009 a basic pack will contain
Home Information Pack Index
Property Information Questionnaire
Terms of Sale/Sale statement
Evidence of Title and Plan
Local and Drainage Searches
Energy Performance Certificate
Lease, and Commonhold Information
Although it is stated that a pack should not include items which are not required or authorised (for example advertising) within a pack, Rapidmove believe that to provide the most comprehensive pack which a seller and buyer can rely upon their Platinum Service is a premium pack. This contains all of the required searches and where applicable title insurance. As Lawyers we understand a buyer's solicitors requirements to satisfy the Council for Mortgage Lender's Rule 6 requirements so anything less may cause delay. We also believe that a quality pack should contain a HCR enabling a buyer to make an informed decision and their solicitor to exchange sooner.
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Do I need a HIP now?
From August 2007 you will be unable to market a property for sale without a pack if you have a 4 bedroomed property. Since that date all other size of residential properties have now been added to the list. If your property was on the market continuously since August 2007 however, there is still no "drop dead" date when those properties will need a HIP.
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Do you need a HIP for every transaction?
No, only residential properties (freehold and leasehold) in England and Wales will be subject to the legislation. The regulations provide exemptions for seasonal and holiday accommodation, conversions or lettings under a Lease, mixed sales, and portfolios of property. Also included are unsafe premises and those to be demolished
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How much will it cost?
A Rapidmove pack will cost, for freehold properties, £315 all inclusive. Estimates for a full pack including HCR are in the region of £600. Leasehold sales will be slightly more due to the cost of obtaining additional information including the Lease and Freehold title. We are also currently working with Home Inspectors to work on a scale of charges for Home Condition Reports based on the sale price of the property.
Remember these are not all new costs and many were already part of a traditional sale and purchase transaction.
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What if I decide to take my property off the market? Who owns the pack?
The Pack will remain the property of Rapidmove if you have not paid for the pack upfront. If however, you wish to have a pack prepared and then select an Agent either through our linked partner firms or indeed market the property yourself you can pay the full cost of the pack and take the contents with you either as an electronic document saved to mini-disc or memory stick or in paper form should you wish to do so.
If instructions have been given to us through an Estate Agent or Solicitor you should refer to their Terms of Business as variations may apply.
On deferred payment terms Rapidmove may agree to allow you to move agents and solicitors and full details are available on how to do this.
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Has the pack content now been set by the Government?
The Regulations were published in March 2007 and have had amendment regulations published in the transitional period since then. The CURRENT contents are now known.
Rapidmove's site ensures that any changes to the pack content can be quickly and easily adapted to suit the requirements of the legislation.
More changes are coming in April 2009 with the inclusion of the Property Information Questionnaire, (PIQ) First day marketing concessions will end, Insurance cover for uncompleted searches will end and the Registered lease is the only Leasehold document permanently required to be included within a Leasehold pack.
Packs for freehold properties will now therefore include, Index, EPC, Sale Statement, Evidence of Title, plan, Local and Water searches and where Leasehold a copy of the Lease. From April also the PIQ.
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I thought HIPs were no longer required!
Not true! It is true that the government have decided that due to the lack of Home Inspectors and the unease surrounding HCR's they would trial the reports prior to full implementation at some later stage. You will still need a pack to sell your property from August 2007 but this will not have to include a HCR only an Energy Performance Certificate together with authorised documents contained within the Regulations.
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