HOME INFORMATION PACKS (HIPs)

BACKGROUND

Home Information Packs (HIP’s) have been introduced by the Government in the hope of speeding up the home buying process.  The pack contains information about the property which is needed as part of the legal process once the sale has been agreed.  By providing this information upfront it is hoped that transactions can be speeded up thereby reducing stress for those involved and minimising the chances of sales failing.  

WHICH PROPERTIES NEED A HOME INFORMATION PACK?

From the 14th December 2007 all residential property being placed on the market must have a HIP.  It is the legal responsibility of the seller (or their Estate Agent if they have one) to provide the Home Information Pack for the property that is being sold.  

WHO CAN PROVIDE A HOME INFORMATION PACK?

Anyone can compile a HIP but the main sources will be solicitors, specialist providers, Surveyors and Estate Agents.  Obtaining a HIP is a very straight forward matter which Drew Pearce can assist with.  We can advise on the cost involved and liaise directly with your solicitor or make arrangements to provide a HIP for you ourselves.  

HOW LONG DOES IT TAKE?

A HIP can be prepared quite quickly (typically within a few working days) and once we know that the process is underway we can commence marketing your home.  

EXCEPTIONS

There are some properties which do not require a HIP, some examples are:

• Property without vacant possession on completion (tenanted)
• Business and Commercial property with no residential element
• Property sold with land where they comprise the following:
  • Over 5 hectares as one lot
  • Grazing/keeping of livestock
  • Horticulture or agriculture
  • Breeding/keeping animals
• Seasonal/holiday accommodation (where this is supported by planning consents/stipulations)
• Mixed sales where the residential element is ancillary to the main usage and again marketed and sold as one lot.
• Dual use sales
• Boarding houses/guest houses which are sold as such
• Portfolios marketed for sale as one lot
• Properties which are unsafe and earmarked for demolition
• Property due for conversion to non residential use
• Homes that are not buildings (e.g. caravans)  

WHAT IS IN A HOME INFORMATION PACK?

Some documents are mandatory and others are optional.

Mandatory documents:

• Index which lists the contents of the HIP
• Energy Performance Certificate (EPC)
• Sale statement summarising the terms of sale
• Evidence of title
• Standard searches
• Lease (where appropriate)

Optional “authorised” documents

• Summary/explanation of the pack
• Additional leasehold information
• Home Condition Report (HCR)
• Additional searches (mining/flooding/chancel etc)
• Warranty/Guarantees relating to the property and to work done on it
• Additional title information e.g. defective title indemnity
• Planning/conversion documents
• Home contents form
• Home use form
• Translations/brails/large print etc

In addition to the information legally required in a HIP it is our experience that a number of other documents can be really useful to have available when you are selling your home.

• These include invoices for work done on your home. Keep a note of payment details (when, how etc) in case of any dispute.
• Keep a note of payment details (when, how etc) in case of any dispute.
• Any certificate showing that work has been done to the correct standard and by somebody who is qualified to do it.
• Guarantees for work such as damp proofing.
• Planning permissions and/or building regulations approval for any building work that you have had done.
• Records of annual boiler services and repairs if appropriate.
• Instructions for built-in appliances.
• Receipts for fixtures and fittings.
• A note, if possible, of your annual utility charges.  

WHO PAYS FOR A HIP?

A seller pays for a HIP and the cost varies between providers.  Typically the cost will range between £300 and £450.  Most providers of Home Information Packs offer various payment options with deferred schemes allowing delayed payment of up to 12 months.

CONCLUSION

The provision of a HIP is very straight forward.  Drew Pearce can guide you through the process and liaise with your solicitor or put you in touch with the right people if you are not sure who to use.