Will the introduction of the HIPs regime save time and / or money for the buyer and /or the seller?  It is difficult to say as, although the  MORI IPSOS report on the ‘Dry Run’ was favourable, there is a huge difference between a system of free packs with no sanctions for breach or delays for compliance and one where packs must be paid for and rules complied with to avoid sanctions. 

The impetus behind the pack was that it would save all round especially the expected saving of costs incurred through transactions that ultimately failed.

Looking at the position of the buyer and the seller, it is not easy to see great savings in either the cost of buying and selling or in the time a transaction may take to come to completion.

For the seller, there will be an initial delay.  Save where the transitional provisions apply the property cannot be marketed until a HIP is in existence. Estimates are that it will take around 10 working days to compile the pack.  So there is likely to be a delay between the decision to sell and the property going on the market that was not there before.  Time may be saved later on by the fact that the buyer’s solicitor will need to raise fewer questions about the property but that saving will depend on the standard of the pack and the information it contains.

There will also be additional costs for the seller in connection with the pack.  Whilst a lot of the legal elements in the pack are merely shifted in time from post-offer to pre-marketing, the seller is going to have to be responsible for the cost of the compulsory EPC and the compulsory searches.

For the buyer the saving in time will also depend on the quality of the pack that is provided.  If it merely contains the basic information, the buyer’s solicitor will have to obtain the additional information in the same way and time frame as now.

A full disclosure HIP will save time as the buyer’s adviser will be able to report on the property’s legal and physical condition immediately – the only additional queries should be in connection with the buyer’s personal requirements in relation to the property and timing of the transaction. It must also be remembered that the information in searches and title information is only valid at the moment when they are issued  - even if a property sells relatively soon after it goes on the market buyer's solicitors and lenders will want up to date searches and official copies of title.

Whether there will be any saving in cost is questionable as, at the moment, it appears mortgage lenders will still require their own survey and valuation report for which the buyer will have to pay.

Until the regime is embedded and everyone appreciates the benefits of full and early disclosure, savings are debatable.  The problem of searches becoming out of date remains to be addressed let alone overcome.