Do I Need A HIP When Selling Privately?

17 Dec 2007

More and more people are starting to sell privately for various reasons:

1) Buyers are starting to search for private sales, which goes in hand with more people wanting to sell privately and vice versa.
2) Eradicates the costs of estate agents
3) Eradicates estate agents, period.
4) More and more platforms (i.e. websites) are emerging that are advertising private homes.

So, there is a big market for private sales, but the big question is, can you avoid HIPs by selling privately? Do I need a Home Information Pack when selling a property privately? This is a bit of a dodgy area as far as I’m concerned.

As it stands, if a buyer approaches a homeowner and asks if they would consider selling their house. The homeowner accepts and the sale goes through to completion. In this circumstance a HIP is not needed as the seller is not marketing their house to a section of the public. So the rule is that if you sell privately and do not openly market your property, you do not a HIP.

However, if the vendor decided to find out who else might be interested, by for example, placing an ad on Rightmove or putting up a board outside their house a HIP would need to be ordered at that point.

Of course, the obvious concern is- you could market your property openly, using certain methods, and not declare your methods. Duh.

These so called ‘loopholes’ will be immaterial from October 2008 as from this date ALL residential sales will require HIPs. But for now…do what you have to do.

Attention! If you're new here, you may want to subscribe to my RSS feed so you're notified of all new blog entries.

Talk / 0 Comments, Be The First