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From From 14th December 2007 a Home Information Pack will be required for all properties being sold in England and Wales. We’ve been doing our homework and want to help you through the process every step of the way.
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buy
Everything you need to know about HIPs.
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| Some frequently asked questions about HIPs: | | |
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What are HIPs?
It is a pack of documents about a property that the seller has compiled. The HIP contains useful information about the property including how to improve the energy efficiency of the home. You can use the HIP to inform the offer you decide to put in on the property.
Why do we need HIPs?
To improve the buying and selling process by giving buyers more information from the outset, so they can make informed decisions early on and will, therefore, help reduce the number of aborted transactions that take place
Your sale is much less likely to fall through as the buyer will have a lot of information about your property before even putting in an offer
You can proceed with the sale, confident that there is less likely to be any last minute legal problems, delaying completion
What’s in a HIP?
Registered freehold properties
These documents are compulsory before the Estate Agent is allowed to market your property
Index
Energy Performance Certificate
Sales statements
Official copy of the registrars and title plan
Home use form
Home contents form
Further compulsory documents required 28 days after the first point of marketing
Where part of the property is let or will become let on completion of the sale copies of any leases or licences to which the property is subject
Local land charges search
Local authority search
Drainage and water search
Sample of optional (authorised) documents
Home Condition Report
Official copies of documents referred to on the registrar of the property
Additional search reports
Any documents referred to in search reports
Leasehold properties
Compulsory before the Estate Agent is allowed to market
Index
Energy Performance Certificate
Sale statement
Official copy of the registrars and title plan
Home use form
Home contents form
Further compulsory documents required 28 days after the first point of marketing
A copy of the lease or leases, any deeds of variation and other leases or licences that are relevant or affect the title
Where part of the property is let on completion of the sale, copies of any leases or licences to which the property is subject
Any rules and regulations in force at the time made by the managing agent or landlord
Statement or summaries of service charges relating to the previous three years
The most recent request for payment of service charges, ground rent and insurance relating to the proceeding 12 months.
The name and address of the current or proposed landlord, of the managing agents or other person who may be likely to manage the property
Any alterations to the proposed lease or regulations
A summary of any works being proposed or undertaken that affect the property
Local land charges search
Drainage and water search
Sample of optional (authorised) documents
Home Condition Report
Memorandum and articles of associations of any company related to the management
Any lease relating to the property (head lease or under lease)
Any licence or tenancy affecting the property
How do I get a pack?
Just ask whoever is advertising it for sale. This is usually an Estate agent, but could be another business or individual. If it's an Estate agent, they must give you a copy of the pack free of charge (although they may make a reasonable charge to cover the costs of copying and posting it). If the seller isn't using an Estate Agent, you should be able to get the pack directly from them.
How soon after commissioning a HIP will it be ready for buyers to view?
It is estimated that it will take under 14 days but the Government expect all HIPs to be issued within 28 days.
What should I do with the HIP?
You should look at the HIP on a property you are interested in buying. You may also wish to give a copy to your solicitor before you put in an offer, so that they can advise you on any legal issues. It is recommended to give your solicitor a copy once your offer has been accepted - it should save you time and money in the rest of the process.
What is an Energy Performance Certificate (EPC)?
The government aim of the EPC is to promote increased awareness of energy consumption and how people can reduce their carbon footprint. The new EPC will asses homes with an energy performance rate of A to G. To rate a persons home, a detailed survey must be carried out by a 'Domestic Energy Assessor'.
How much will it cost me?
If you're a buyer, nothing: you'll get a copy of the Home Information Pack free on any property you're interested in. However, a reasonable charge may be made for copying and posting the pack.
With Home Information Packs, the overall costs of buying and selling a home will be similar to the costs before the introduction of the Packs, but will be spread more evenly between buyers and sellers.
The Energy Performance Certificate is a compulsory part of the Pack, and is paid for by the seller.
When is a HIP not required?
Private sales or properties not marketed to the public
Residential properties sold without full vacant possession
Properties where the most recent use was non-residential and there will be no conversion to residential use prior to the sale
Properties where the primary use is not residential
Properties where conversion to non-residential use is expected prior to sale
Properties where the use is restricted by planning conditions to seasonal or holiday accommodation
Mixed-use property
Dwelling with dual use (if primary use is not residential)
Sales of portfolios of properties
Unsafe properties
Property due to be demolished
Residential properties which are sold with 5 hectares or more of land and the most recent use of the land was primarily for cultivation, keeping of livestock or woodlands.
When should I expect to receive a Home Information Pack/Energy Performance Certificate for a property I am interested in buying/am in the process of buying?
If a property which falls within the scope of the scheme is first placed on the market during the temporary period, which runs from 1 August 2007 until 1 June 2008, then the HIP must be commissioned before marketing can begin. During this period the EPC must be provided before exchange, although there is no set time limit on when the rest of the HIP should be provided.
If a property which falls within the scope of the scheme is first marketed from 1 June 2008 onwards, a HIP including the EPC should be available from the time it is first placed on the market
Download more Information on HIPs for buyers >
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