House prices, interest fluctuations, bank lending criteria, buy-to-let – you name it, anything that affects the buying and selling of homes usually makes headline news which is unsurprising given the percentage of personal wealth invested in bricks and mortar. This year’s major change, the introduction of Home Information Packs (HIPs) has, after a rocky start, had a mixed reception. Here, we explain how HIPs, when properly executed, could actually simplify the conveyancing process and speed things up at the same time.
Since 14 December 2007 all residential properties will require a Home Information Pack (at least to be commissioned if not completely compiled) before they can go onto the market. However, the HIP which was finally launched is a considerably watered down version of the original HIP which was intended to make the conveyancing process more transparent and less prone to hazards such as delays.
In advance of the introduction of home information packs, we joined forces with a group of local independent agents to review how best to deal with the production of HIPs. When we looked at the requirements, we decided that not only could we produce them online but, in doing so, we could also achieve the Government’s original objective of simplifying and streamlining the conveyancing process. To do this, we have invested in a web-based system, VisualHIP, which assembles the constituent parts of the HIP electronically. This means that the compulsory elements of the HIP, including the Evidence of Title, Searches and the Energy Performance Certificate, are automatically requested at the press of a button. The whole process can be started by the local estate agent, responsible for marketing the property, via a link to Wright Hassall’s VisualHIP website, as part of the normal sales procedure. The whole process is undertaken by us from initial instruction from the client or from the estate agent acting on the sale via a direct weblink already installed. Once the information requested is available, the results are automatically collated and made available to the client and agent who are able to download the contents of the HIP.
The HIP with all the necessary elements can then be viewed on-line via a unique code which is given to the seller and to the agent as well as prospective buyers. Obviously a paper copy can be printed if necessary but, due to the sheer size of the document, we are encouraging people to view on-line.
The additional advantage of this system is the ability to go beyond the compulsory requirements of the HIP and compile the entire history of the property (such as the planning permissions, fixtures and fittings and guarantees) online. We can collate all the information that is normally requested by a prospective purchaser’s solicitor ahead of time so that, by the time the offer is made, the seller will be ready to exchange. What is more, in the future all this collated information can be viewed online by all parties who can track progress using the unique code given when the HIP was originally commissioned. The ability to see exactly what is going on in the conveyancing process will help to dispel many of the problems that accompany the sale of a property – nothing will be hidden and that facts will be there for all involved to see. This will save considerable time raising, and replying to, the many enquiries between solicitors which will in turn reduce the time between finding a buyer and exchange of contracts which is so important in fixing a commitment. The future is electronic!
November 2007
For more information about HIPs or Wright Hassall’s conveyancing procedures, please email Jackie Prior.
