Complete Guide to HIPs

In August 2007, the Government introduced legislation aimed at facilitating the home-buying process for both Sellers & Buyers. The legislation led to the introduction of the Home Information Pack or HIP for all properties over 4 bedrooms marketed after 1st August 2007. However, as from 14th December 2007, this has been extended to all properties marketed after this date. What this effectively means is that, in order to market your property, you will require a Home Information Pack.

Frequently Asked Questions

Why do I need a HIP?
The Home Information Pack provides key information needed by a potential buyer prior to commencement of the home-buying process and is designed to ensure a much smoother and quicker process. It allows the potential buyer to view all relevant documents before making an offer and provides answers to several key questions. A HIP ensures that your sale will not be hampered or delayed by local searches or the obtaining of crucial documents necessary for exchange of contracts.

How much will it cost and who will pay?
The cost of a HIP is set by the market and, whilst the overall costs of buying and selling are similar to those prior to the introduction of the HIP, these costs are more evenly distributed.
The EPC is compulsory and will be paid for by the Seller at extra cost, though a small fraction of the total cost of selling your home.
The Seller is obliged to provide a HIP free of charge to any potential buyer but the regulations to allow the Seller/Estate Agent to charge reasonable costs for copying and postage.

Who is responsible for providing a HIP?
This is down to the individual responsible for marketing the property which will be, in most cases, the Estate Agent instructed by the Seller; but can actually be the Seller themselves. The HIP must have been commissioned by the responsible party by the time the property is placed on the market and an Energy Performance Certificate (EPC) together with any other relevant documents must be provided upon request.

When is a HIP/EPC not required?
If the property is sold before the HIP is received, then this is no longer required but the Seller is still legally obliged to provide an EPC to the Buyer at exchange of contracts or as soon as available.

Do I have to provide a HIP to all potential buyers?
There are exceptions where you or your Estate Agent will be entitled to turn down a request for a HIP without incurring any penalty.
• Where it is felt that the buyer cannot afford the property in question, we will request evidence of a financial arrangement or “in principle” agreed mortgage.
• Where the potential buyer is uninterested
• Where you, as the Seller, simply do not wish to provide a HIP to a particular individual as you have no intention of selling to them (current regulations allow this to be refused without any reason).

Are there any other circumstances where a HIP is NOT required?
• No marketing is involved i.e. a private sale
• Non-residential property
• Seasonal/holiday accommodation
• A mixed sale (i.e. shop and flat)
• Right to buy or similar sale
• Sale of a portfolio of properties
• Complete vacant possession
• Unsafe/demolished properties
• Properties on the market prior to the requirements i.e. before 1/8/07 for 4 bedrooms and before 10/9/07 for properties with 3 bedrooms.
New Builds under Part L Building Regulations 2006

How long does a HIP last?
There is no need to update the HIP whilst the property is on the market but in instances where the Seller withdraws the property and it is later remarketed, a new pack will normally be required with the necessary updating of the documents in accordance with HIP regulations.

If the property is withdrawn as a result of acceptance of an offer by the Seller and that offer subsequently falls through, the property can then be remarketed with the original HIP, provided that this is recommenced within one year from the date of the initial marketing date or, if later, then within 28 days of the sale falling through.

In the event that the sale stops for any other reason, provided that the property is remarketed within one year, the existing HIP may be used.

What documents are required in the HIP?
• Energy Performance Certificate (EPC) – this is a compulsory document provided by a Domestic Energy Assessor or Home Inspector (who should be registered or approved) usually a member of the HIP Code and signed up to the Property Codes Compliance Board (PCCB) LINK
The EPC gives details of the energy efficiency of the property and will also offer advice on how to improving energy efficiency, cutting emissions and fuel bills.

• Index of Contents – this should also include explanations for any missing documents.

• Sales Statement – a summary of the terms of sale, usually drawn up by a solicitor or conveyancer instructed by the Seller.
Evidence of Title – If the property is registered, this will take the form of official copies of the register or title plan (copies of which are available from the Land Registry Office and usually subject to a fee. If the property is not registered, the documents required will be the official result of a search of the index map (SIM), again available at the Land Registry Office for a fee. In some instances, it may be necessary to also include whatever documents are relied on to show that the Seller has title or the right to sell.

• Local search – conducted either through the local Land Charges Department of the Local Authority or the National Land Information Service (NLIS) or a personal search company.

•  Drainage and water searches – through the local water supplier or NLIS or personal search company.

• Leasehold or Common hold documents – where appropriate.
Home condition Report – this is an optional report conducted by a Home Inspector which gives details of the condition of the property.

• Any guarantees or warranties

• Home Contents or Uses forms – again these are an optional extra which the Seller may wish to provide.

• Additional searches - i.e. mining, environmental or flood risk required in particular areas.

How do I organise/obtain a HIP?
Through our long-standing and well-established connections with local solicitors/specialist pack provider, we are able to assist you, as the Seller, in providing your Home Information Pack and Energy Performance Certificate (EPC) in accordance with HIP Regulations. Our experienced negotiators will advise you on what documents are required and will assist with the appointment of your DEA/Home Inspector taking the stress out of marketing your home. The cost of providing the HIP will be advised by and payable to the third party.