Part-exchanged Properties

With the property market tightening rapidly, a builder is more likely than ever to offer to take the existing property of a buyer in part-exchange for the purchase of a new one. Often, the builder will wish the house being part-exchanged to be put (or remain) on the market between the exchange of contracts and completion of the sale, in the hope that the builder will have the part-exchanged property ‘on its books’ for as short a time as possible.

When the property being part-exchanged is already on the market, a Home Information Pack (HIP) will have been prepared. If the HIP received by the builder is ‘in date’ (i.e. not more than 12 months have passed since the date the property was first marketed), then parts of it can be ‘recycled’.

In all cases a new sale statement and index would be required. However, the energy performance certificates and Land Registry documents can be reused. Searches cannot be reused in normal circumstances, as the liability for the accuracy of the search cannot be ‘passed on’. However, the builder can market the property using the previous documents of title until the change in ownership has been recorded by the Land Registry.

Shared Ownership Properties

If a shared ownership property is being purchased by a sitting tenant, a HIP is not necessary if no marketing of the property has taken place. However, if such a property is being sold on the open market, then a HIP is necessary.