Town & Country 22 Chester Road West Deeside CH5 1BX
Tel: 01244 816936
Fax: 01244 811150
The Home Information Pack (also known as the HIP) is compulsory for most homes on the market in England and Wales.
Why you need a HIP:
It is a legal requirement to have a HIP and you can't market your property without one. A HIP is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller's agent.
The HIP lets buyers see important information on the property at the start of the process, free of charge. This means there's less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.
You don’t need a HIP for:
- properties where there is no marketing, for example if you are selling to a member of your family
- non-residential properties
- properties limited by law to use as holiday accommodation or occupation for less than 11 months per year
- mixed sales, for example a shop with flat
- sales of portfolios of properties, for example selling two properties together
- properties not being sold with completely vacant possession, for example with a sitting tenant
- unsafe properties and properties due to be demolished
- properties sold through the ‘Right to Buy’, ‘Right to Acquire’ and ‘Social HomeBuy’ home ownership schemes
What does a HIP contain:
See an example:
http://www.communities.gov.uk/documents/housing/pdf/samplehomeinfopack.pdf
The HIP is made up of required (compulsory) and authorised (optional) items.
There shouldn't be any marketing or advertising material in the pack, so make sure it contains official information only.
Compulsory documents:
Listed below are all the compulsory documents that need to be included.
The following documents must be included in your HIP:
Freehold properties
- Home Information Pack Index
- Property Information Questionnaire (PIQ), from 6 April 2009
- Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
- sustainability information (required for newly built homes)
- sale statement
- evidence of title
- standard searches (local authority and drainage and water)
Leasehold properties
- all the compulsory documents above
- a copy of the lease
For more detail on these documents follow the links below.
HIPs: compulsory items
http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Homeinformationpacks/DG_171808
HIPs: leasehold and commonhold
http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Homeinformationpacks/DG_171824
Optional documents:
Other documents can be included within your HIP, but these are optional. If they are included, it could help to speed up the sale and ensure that the process goes more smoothly. These include:
- Home Condition Report
- legal summary
- home use/contents form
- other documents like specialist searches (for example, the seller may choose to include a mining search in a mining area)
For more information follow the link below.
the HIP must be available and contain the following documents on the first day a property is put on the market:
- Home Information Pack Index
- Property Information Questionnaire (PIQ)
- Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
- Sustainability information (required for newly built homes)
- Sale statement
- Evidence of title
If the following documents are unavailable when marketing begins, they should be added to the HIP as soon as they are available. These documents must be included within 28 days of the date the property was first placed on the market:
- Standard searches (local authority and drainage and water)
- A copy of the lease for leasehold properties
- Commonhold documents, where appropriate
Buyers
The HIP must be available on the first day a property is marketed for sale. If you are buying a property, just ask whoever is advertising it for sale for a copy of the Home Information Pack. This is usually an estate agent, but could be another business or individual.
They must give you a copy of the pack free of charge. However, they may make a reasonable charge to cover the costs of copying and posting it.
For a step by step guide to HIPs, read 'HIPs: a buyer's guide'.
Sellers
The 'responsible person' (in most cases, the estate agent) will not be allowed to market your property unless the HIP is available. You'll need to make arrangements to have a HIP compiled (including paying for it) along with other preparations for selling your home. However, if there's a delay in getting certain documents, like the local searches, these can be added after your house is put on the market.
Who compiles the HIP?
You can compile it yourself or you can hire an estate agent, solicitor or HIP provider to do it for you. Always make sure that your HIP provider is signed up to a code of practice, like the HIP Code.
While the property is on the market, there is no need to update the HIP. If the sale of your property stops and then starts again, you may have to compile a new HIP and provide up-to-date documents.
However, you can carry on using the same HIP without the need to update any of the documents where:
- marketing stopped because an offer was accepted and the sale has fallen through (but remarketing must start within one year of the date when marketing first began or, if later, within 28 days of the sale falling through)
- marketing has stopped for any other reason and the seller remarkets the property within one year of the date when marketing first began.
The effect of this is that the HIP has a shelf-life of at least 12 months for the seller.
Do you have to provide a HIP?
You should provide a copy of your HIP to every potential buyer if they want it. You can refuse to provide a HIP to the buyer if you believe that:
- they could not afford the property, eg people who don't have an ‘in principle’ mortgage
- they are not really interested in buying the property, eg a journalist posing as a buyer to get a HIP of a celebrity’s home
- they are not a person who you would wish to sell the property to (but this doesn't mean you can unlawfully discriminate against someone)
To find out more about your rights and HIPs, follow the link below.
http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/Homeinformationpacks/DG_171831
What happens if you don't provide a HIP?
If you don't provide a HIP then you or the person marketing the property could face a fixed penalty notice (currently set at £200).
What will a HIP look like?
There isn't a standard 'look' for a HIP. The only requirements are that it includes all of the compulsory ('required') items and that these comply with the rules governing the age of required documents at the first point of marketing. For instance:
- the energy performance certificate (EPC) should be no older than three years when marketing starts.
- the title documents and standard searches should be no more than three months old when marketing starts
Energy Performance Certificates
The EPC is required by law when a building is constructed, sold or put up to let.
Sellers or buyers of homes
All sellers of homes need to ensure that they provide a Home Information Pack which includes an EPC for potential buyers.
An EPC must be made available to a potential homebuyer – free of charge.
Builders
An EPC needs to be provided to buyers of newly built properties.
Landlords
You’ll need to make an EPC available to prospective tenants the first time you let a home. An EPC is only required for a property which is self-contained and is valid for 10 years.
An EPC isn’t required when a tenant rents a room and shares facilities.
Tenants
An EPC must be made available to you free of charge. An EPC is only required for a property which is self-contained and is valid for 10 years.
If you are a prospective tenant, an EPC isn’t required when you rent a room and share facilities.
If you are not in one of the above categories
Even if you do not fall into the above categories, you can still apply for and receive an EPC. This may be because you want to know what the energy efficiency of your home is and implement improvements suggested by the recommendation report.
Example of an Energy Performance Certificate
We are able to arrange this at a cost of £60+VAT. To book please call 01244 816936 or complete the form below: