The Home Information Pack is now a compulsory information pack required for some properties. These packs are now required for all properties marketed for sale from the 14th December 07. Currently, any property that was already on the market on the relevant commencement date (i.e. 1 August 2007 for sales of homes with four or more bedrooms; 10 September 2007 for those with three or more bedrooms and 14 December for all properties) does not need to have a HIP.
These packs provide valuable information to the buyer about the property allowing them to make a more informed decision about the home they are buying. This reduces the risk of any nasty surprises during the selling process that could possibly delay the sale benefiting the buyer and the seller.
At this stage no such date has been set when all properties that are on the market will be required to have a HIP.
Included in the pack
COMPULSORY ITEMS:
Home Information Pack Index
Provides a checklist for sellers, buyers, estate agents and enforcement authorities.
An Energy Performance Certificate
Compulsory from 1 August 07 The Certificate advises on a scale of A-G about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.
Sale Statement
Provides basic information about the property being sold including the name of seller, whether the property is freehold, leasehold or common hold, registered or unregistered and if the property is being sold with vacant possession.
Standard searches
The local land charges register relating to the property being sold.
Other records
Held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals.
Drainage and Water Services search
The provision of drainage and water services to the property.
Evidence of title
These are documents that prove you own the property and have the right to sell it.
VOLUNTARY ITEMS:
Home Condition Report
This contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report.
Legal summary
This contains complex documents that may be difficult to understand, so this optional part of the pack may be very helpful to buyers, although it is advised buyers still need to get their own legal advice as well.
Home / use contents forms
This includes information on boundaries, services, notices, planning permissions, sharing with neighbours, fixtures and fittings list and any other matters that maybe of interest to the buyers.
Other documents
Sellers can save time and speed up the sale if they include non standard searches where appropriate. It is also a good idea for sellers to include guarantees and warranties for work that has already been carried out on their homes.
Who needs a HIP?
Studios, 1&2 Bedroom properties- New to the market from 14th December require a HIP.
However, Studios, 1&2 bedroom properties on the market before the 14th December, whether with an Agent or advertised privately are currently exempt.
3 Bedroom properties – New to the market from 10th September 2007 requires a HIP.
However, 3 bedroom properties on the market before 10th September 2007, whether with an Agent or advertise privately are currently exempt.
4 or more Bedroom properties – New to the market from 1st August 2007 will require a Home Information Pack
However, 4+ bedroom properties on the market before 1st August 2007, whether with an Agent or advertise privately are currently exempt.
Any break in your property being on the market triggers the requirement of a HIP.
Exemptions:
Properties in Scotland and Northern Ireland
Private sales where the property is not offered on the open market (eg. to a family member, neighbour, or friend)
Non-residential property or where homes are in mixed use with commercial property
Properties sold with sitting tenants and not available for owner occupation
Right to Buy sales by Local Authorities or other social landlords
Homes held on a lease of less than 21 years
How to get a HIP
Use an estate agent –not recommended as it can be expensive and can tie you in
Use a specialist Pack provider – A company specializing in HIP’s
Compile it yourself – This can cost more than paying a provider
HIP Code
The HIP Code provides protection for homebuyers, sellers, estate agents, conveyancers and mortgage lenders who rely on the information included in a Home Information Pack (HIP) provided on residential property within England and Wales. It sets out minimum standards which HIP providers have to meet.
