In a bid to make the home buying and selling process more reliable and efficient, the Government is introducing Home Information Pack's (HIP) which will be a legal requirement for anyone marketing a home from 2007 ...

Under the new Housing Act, from 2007 homeowners or their selling agents will be required to have a Home Information Pack (HIP) when marketing homes for sale and to make a copy of the pack available to prospective buyers on request.

The present system only allows the information needed about a property by buyers and sellers to be released after an offer has been made and accepted.

Problems which occur after this time can cause the terms to be renegotiated, delay exchange of contracts and even result in transactions failing altogether.

Solicitors James & Charles Dodd from Lewisham has compiled a selection of frequently asked questions to help anyone unsure what HIPs are and how they will effect them.

Why is the Government changing the way we buy and sell property? The government wants to offer more transparency at the start of a transaction and reduce the time between offer, acceptance and exchange of contracts. In addition, a reduction in transaction failures and consumer dissatisfaction is also two of its main goals.

Will HIPs deliver those objectives? Yes, if they are produced quickly, efficiently and thoroughly. As is the case with any product or service the quality and usefulness of HIPs will depend on the dedication and professionalism of its provider. Some will, without doubt, be better than others.

When can we expect to see HIPs being used on a regular basis? It is expected the use of voluntary HIPs will become widespread early next year. A compulsory dry run will start next summer and the mandatory use of HIPs will commence early in 2007.

How much will HIPs cost? The cost of putting a HIP together is probably going to be less than £100. What confuses the issue is the cost of obtaining some of the information in the HIP. The Home Condition Report and searches could cost together as much as £600 or £700, making the total cost of the HIP as high as £800. However, most good HIP suppliers will be offering a deferred cost HIP. The seller will pay for the HIP on completion and not when the property is put on the market.

Who will provide the HIP? Anyone marketing a property, be it the seller or an estate agent, will have to be in possession of a HIP first in order to comply with legislation. It is likely anyone will be entitled to put a HIP together (estate agents, solicitors or the public). However, specialist HIP suppliers will soon enter the marketplace.

What comes next? The Government will, early next year, embark on a £6m public awareness campaign. The purpose of the campaign will be to educate property professionals and the public before a HIP trial (the dry run) starts next July. One HIP which will be produced quickly and efficiently will be compiled by Home Information Pack Action Group (HIPAG), a nationwide group of high street solicitors, independent estate agents and local home inspectors, all working together for a common cause to help the Government's objectives and to make moving home a quicker and less stressful procedure for all concerned. The HIPAG firms will work to a standardised format to streamline all transactions.