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Regulations covering the controversial new sellers’ packs, which will be mandatory from next June, say that if a house is taken off the market for more than 28 days vendors will have to provide an updated or new pack when it is remarketed.
The packs, which can cost up to £1,000, include searches, home condition reports and title plans. Whitehall sources said that in some cases the information could be updated at a lower cost though this will be up to the lender and the providers of the packs.
The Tories last night said that the new laws imposed a “double whammy” on sellers.
Michael Gove, the Shadow Housing and Planning Minister, said: “It is increasingly clear that the packs will cost £800 for a semi-detached home, and hit £1,000 for a detached property. If a sale falls through, sellers face being charged a second time to produce a new pack.” The Government said that if a sale fell through, the householder would be given 28 days after negotiations collapsed before having to renew the report. If the house were taken off the market for any other reason, an updated pack would be required after four weeks.
The Council of Mortgage Lenders threw the policy into further confusion by stating that it would expect home condition reports, the main part of the packs, to be updated every three months irrespective of whether a property had been taken off the market.
Lenders were also concerned that the new regulations state that homeowners will not have to disclose subsidence, flood risks or land contamination in the packs. The Council of Mortgage Lenders said that this meant that the packs would not give them enough information and a further valuation of the property would be required.
Mr Gove said: “The Government’s refusal to tell families whether the back gardens will be safe for their children or potential flood risks delivers a serious blow to the credibility of these so-called information packs.”
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