HIPS and definition of 'SOLD'

courtjester

matto wrote: »

We might want to sell our house in the next six months, subject mostly to finding somewhere we want to buy, but until that eventuality arises I don't particularly want to have to deal with estate agents, viewings, etc, yet I'm still keen to avoid HIPs if possible.

And I was thinking maybe I can use one of those cheap online DIY estate agencies to begin the marketing before 1 June.

The regulations require that there be continuing marketing activity, and that the property is not nominally put on the market before 1 June as a sham arrangement to avoid the HIP and as such no grace period would be available for such activity after 1 June, so that a full HIP would be required when the proper marketing takes place later.

The 2007 regulations state that to qualify for the grace period, the property must be put on the market before 1 June with the intention of selling the property before 1 June and that such action is sustained to a reasonable extent after.

courtjester

Imelda wrote: »

Ok, I am going to be putting my flat on the market in one week. So if I accept an offer and take it off the market, and then this buyer later pulls out I will have to get a HIP to be able to remarket it? So, would you recommend not taking it off the market until contracts have been exchanged (and would a buyer go for that? even if i made it clear to any prospective viewers that an offer had been accepted and was proceeding?)

You will not require a HIP (during the grace period June-December 07) if you take the property off the market after accepting an offer but you have to put the property back on the market, providing you do so within 28 days of the offer falling through.

Home Information Pack Regulations 2007
Regulation 34 Transitional Arrangements clause (4)

matto

Thanks for clearing that up.

It does still leave me wondering though. I mean I could start marketing the property tomorrow at an inflated price with a genuine desire to sell the property at that price before 1 June. At a later date (say 3 months) I could reduce the price and later still (another 3 months) market it with a real estate agent. I could create a few emails (using various dial-up ISPs for good measure) to create some interest, etc.

matto

courtjester wrote: »

The 2007 regulations state that to qualify for the grace period, the property must be put on the market before 1 June with the intention of selling the property before 1 June and that such action is sustained to a reasonable extent after.

Here's an interesting thing in relation to the last part of your quote. The regulations (Section 34(2)(d)) state the following:

such action was sustained to a reasonable extent after it was put on the market, during the period starting with 1st June 2006 and ending with 31st May 2007.

So you only have to actively market the property prior to 1 June 2007 (with the intention of selling it before then) for the transitional arrangements to apply.

nelly_2

ginger_nuts wrote: »

what are the advantages off HIPS

Your legs are attached to them and this allows you to walk places