Buying & Selling
A typical conveyancing transaction contains two major landmarks: the exchange of contracts and completion. Conveyancing occurs in three stages: before contract, before completion and after completion.
A buyer of real property must ensure that he or she obtains a good and marketable 'title' to the land; i.e., that the seller is the owner, has the right to sell the property, and there is no factor which would impede a mortgage or re-sale.
A system of conveyancing is usually designed to ensure that the buyer secures title to the land together with all the rights that run with the land, and is notified of any restrictions in advance of purchase. In most mature jurisdictions, conveyancing is facilitated by a system of land registration which is designed to encourage reliance on public records and assure purchasers of land that they are taking good title.
The seller's solicitor or conveyancer will prepare the draft contract to be approved by the buyer's solicitor. The seller's solicitor will also collect and prepare property information to be provided to the buyer's solicitors, in line with the Law Society's National Protocol for domestic conveyancing.
Home information packs:
What are Home Information Packs
The Home Information Pack (also known as the HIP) is compulsory for most homes on the market in England and Wales. From 6 April 2009, important changes will be made to HIPs. This means better information will be available from the first day a property is put on the market.
Why do you need a HIP?
A HIP is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller's agent. It is a legal requirement to have a HIP and you can't market your property without one.
The HIP lets buyers see important information about the property at the start of the process, free of charge. This means there is less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.
What does a HIP contain?
The HIP is made up of required (compulsory) and authorised (optional) items.
There shouldn't be any marketing or advertising material in the pack, so make sure it contains official information only.
Listed below are all the compulsory documents that need to be included.
Compulsory Documents
The following documents must be included in your HIP:
Freehold properties
Leasehold properties
Optional documents
Other documents can be included within your HIP, but these are optional. If they are included, it could help to speed up the sale and ensure that the process goes more smoothly. These include:
Buyers
From 6 April 2009, the HIP must be available on the first day a property is marketed for sale. If you are buying a property, just ask whoever is advertising it for sale for a copy of the Home Information Pack. This is usually an estate agent, but could be another business or individual.They must give you a copy of the pack free of charge. However, they may make a reasonable charge to cover the costs of copying and posting it.
Sellers
From 6 April 2009, the 'responsible person' (in most cases, the estate agent) will not be allowed to market your property unless the HIP is available. You'll need to make arrangements to have a HIP compiled (including paying for it) along with other preparations for selling your home. However, if there's a delay in getting certain documents, like the local searches, these can be added after your house is put on the market.
Who compiles the HIP?
You can compile it yourself or you can hire an estate agent, solicitor or HIP provider to do it for you. Always make sure that your HIP provider is signed up to a code of practice, like the HIP Code.
Who pays for the HIP?
The seller is responsible for the cost of a HIP.
