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Homebuyers Information Packs
Government research shows that 30% of house purchases fall through after an offer has been accepted. The major cause of this failure is that relevant information mainly regarding the property itself is not revealed to the buyer until after the purchase has been agreed and a purchase price set. Problems may not surface until several weeks into the process as the result of a valuation on the property or a legal search. By this time both buyer and seller may have spent a significant amount on the process.
The government's response to this problem is the introduction of Home Buyers Information packs. These will be made compulsory in June 2007 but will be available on a voluntary basis before this date.
A Home Buyers Information pack will be prepared at the expense of the seller. It will contain information designed to give the buyer all of the relevant facts about the property upfront. The major contents of the pack are as follows.
A sale statement which gives the basic details of the sale such as the address, whether the property is freehold or leasehold and who is selling the property.
A Home Condition report which will give the buyer a comprehensive overview of the condition of the property similar to that of a current homebuyers report.
A Home Contents form which contains an inventory of what is included in the sale for example fixtures and fittings and items such as greenhouses and decking.
Home use information which contains information on the property and its use, boundaries, alterations to it and access arrangements.
An energy efficiency report.
Copies of any planning consent.
Copies of any warranties and guarantees applicable.
Evidence of the title showing the legal ownership of the property.
Local searches which are a series of standard questions put to a local authority about a property.
This information will alert the buyer to any potential problems before negotiation on the sale has been finalized. In theory this should reduce the number of sales which fall through and speed up the home buying process.
The cost to the seller for the production of these packs is estimated at around £700 although competition between providers may drive the prices down. The service is likely to be offered by estate agents and solicitors.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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