Guide to HIPs

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by Brian Turner

At the time of writing, there is still a lot of chaos surrounding the implementation of Home Information Packs (HIPs).

In the meantime, HomeMove will attempt to clear away the confusion and provide a simple guide on HIPs - for buyers and sellers.

When selling a property

If you’re selling a home, at present you will only be expected to produce a HIP if your property has four or more bedrooms.

The HIP should be organised & provided by your estate agent or sales solicitor in the event of a public sale.

In the event of your selling privately, you will be expected to compile the HIP yourself. This will involve hiring the services of a solicitor, Domestic Energy Assessor, and Home Inspector if you want a Home Condition Report. You can fine more information on doing that here: How do I compile my own Pack.

Your property must commission a HIP before going on the market, though you do not need to have had a HIP completed before the property is openly listed for purchase.

HIPs have an estimated cost of £600 for being provided.

While it may be true that the current fine for not having a HIP for an eligible property placed on the UK property market is £200 - much less than the cost of a HIP - you must also realise that professional bodies risk further penalties on their ability to market property. So any estate agent or solicitor hired to sell your property should be unwilling to risk the fine rather than commission a HIP.

When buying a property

When buying a property, if it has four or more bedrooms, you should expect to receive a HIP.

Although this should be provided free of charge, some solicitors and estate agents may charge a nominal fee for photocopying the relevant documents.

You should bear in mind that the HIP may not be readily available immediately after the property has been listed for sale. This is because the property sellers only need comission a pack, and that it may take a few weeks to ensure the process is completed.

When you do receive a HIP, it should contain all of the following compulsory documents:

1. Home Information Pack Index

This shows which documents are included, and if any are missing, should provide clear reasons why, and when these can be expected to be completed.

2. Energy Performance Certificate

This provides information on the energy saving value of the home, with Band A offering cheaper fuel bills, going to band G, as most expensive. There should also be an environment impact assessment, again using a Band A to Band G system for least impact to most impact.

Important Note: You should be aware that an Energy Performance Certificate is based on expected performance of features installed on the property. However, a property where these are not properly installed could result in significant differences in practice. For example, if double glazing has been improperly fitted, the practical result will be that the property will not be as energy efficient.

3. Sale statement

This contains the basic legal statement on the property for sale, such as its address, whether the property isfreehold, leasehold or commonhold, and also if the property is being sold with vacant possession.

4. Standard searches

These are standard legal searches relating to the actual Land Registry record of the property and its boundaries, and also provision of drainage and water services to the property.

5. Evidence of title

This simply carries copies opf legal documents proving that the seller indeed has the right to sell the property.

6. Additional information for leasehold and commonhold sales

This provides specific information for leasehold and commonhold sales, such as copy of the lease or commonhold community statement, applied regulations, name and address of the current or proposed lessor or other relevant ownership body, and service, insurance, and works information.

It may also contain the following optional documents:

7. Home Condition Report

A survey on the physical condition of the property, which is legally binding.

8. Legal summary

A simplified summary of the various legal documents, to make their purpose easier to understand.

9. Home use and/or contents forms

Other information relating to the property, such as which fixtures and fitting s are provided with the sale, as well as information on boundaries, notices, services, sharing with neighbours, planning permissions and other matters of interest.

10. Other documents

These may include searches on potential environmental hazards to the property, such as flood risk, any known risk of contaminated land, and a mining search where applicable.