As well as the cost of getting a mortgage and buying a home, sometimes there are hidden costs that don’t become apparent until after the purchase of your new home ahs been agreed, or the price set with the seller. These hidden costs are usually in the way of what a legal search on the property uncovers, or the valuation of the house may be significantly different from the agreed price.
The problem that faces both buyer and seller at this point is that there may have already been large sums of money exchanged hands – solicitor’s fees, survey costs and more. If the sale falls through because of the valuation or legal search, both parties can be left considerably out of pocket. Indeed, figures from the government show that this is the cause of at least 30% of all house sales falling through.
To combat this, legislation was passed that now makes it compulsory for a homebuyers information pack to be made available. This is more geared towards the buyer, since the seller must meet the cost of the information pack. Not only that, but an information pack will have all the most important information that a buyer needs to help decide whether this property is for them or not. It includes:
• Statement of Sale. This has all the details regarding the address, if the house is freehold or not and the seller of the property itself.
• Home Condition Report. Similar to an actual homebuyers report, this has to let the buyer know the condition of the property, including any outstanding repairs, etc.
• Home Contents Form. Since many sales now include fixtures and fittings, this will lay down in print what actually comes in the price, to avoid any confusion or arguments later on.
• Home Use information. This shows any boundaries or access issues – particularly useful for country properties on rambling paths.
• energy efficiency report.
• Any warranties or guarantees of work carried out on the property.
• Copies of any planning consent for future expansions or upgrades.
• Local searches. These take the shape of questions that may have been made about the property to the relevant local council.
• Evidence that shows the deeds and title of the property, so you know it’s the legal owner that’s selling the house.
Although this may seem like a lot of information, especially since there is already a homebuyer’s report that has this in it, the amount of money and time this newer report can save you is more than worth it. Especially since the seller is the person who has to pay the cost. Yet it’s still a safeguard for the seller as well, since the buyer can’t change their mind and pull out of the sale for a reason that’s covered in the report. The added benefit of a homebuyers information pack is that, in theory, it could even lower the cost of buying a house, since the seller will provide much of the required information.
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