Are you ready for HIPs?
If you’re buying a new home then by law you have the right to request a Home Information Pack for
the property. We’ve been doing our homework and want to help you through the process every step of the way. Read below for some frequently asked questions.
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.
How does a HIP help you?
It assists in leading to a successful purchase - much of the information about a property is available before you view. This reduces the need for you to withdraw from the purchase later due to problem surveys
Make an informed offer - if the seller has opted for a Home Condition Report you will be aware of the condition of the property on viewing and can make a more informed offer
Minimise legal problems - you can proceed with the purchase confident that there is unlikely to have any last minute legal problems that could delay the completion of the sale
What’s in a HIP?
Compulsory Documents for registered freehold, leasehold and commonhold properties
Home Information Pack Index – listing all the documents with a checklist for sellers, buyers, estate agents and enforcement authorities. If a document is unavailable, the index must say so, giving the reason for being missing and what steps are being made to obtain it
Energy Performance certificate – indicates how energy efficient your home is, including recommendations on how to improve your energy efficiency to save money and help the environment
The sale statement provides basic
information including:
The address of the property being sold
Whether the property is freehold, leasehold or commonhold
Whether the property is registered or unregistered
Whether or not the property is being sold with vacant possession
Standard searches, including:
Local land charges register
Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals
The provision of drainage and water services to the property
Evidence of title – documents to prove the seller owns the property and has the right to sell. Where the property is being sold is registered, certain documents that are available on request from the Land Registry must be included in the pack.
These provide up to date official record of who owns the land and consist of:
Official copies of the individual register
An official copy of the title plan
Compulsory Documents for leasehold properties only
A copy of the lease
You should also include, whenever available:
Any regulations or rules that apply to the property that aren't mentioned in the lease and any proposed amendments to same
Statements or summaries of service charges covering the previous 36 months
Where appropriate, the most recent requests for payment of service charges, ground rent, insurance against damage for the building in which the property is situated, and insurance in respect of personal injury caused by or within the building during the 12 month period before marketing began
The name and address of the current or proposed lessor, and details of any managing agent that has been appointed or proposed by the lessor to manage the property
A summary of any works being undertaken or proposed that will affect the property or the building in which it's situated.
Compulsory Documents for commonhold properties
An official copy of the individual register and title plan for the common parts
Where they are reasonably obtainable, or sellers can reasonably be expected to be aware of them, the following documents and information are also required:
Copies of any regulations or rules not described in the commonhold community statement and any amendments proposed to those regulations or to the commonhold community statement
Copies of any requests for payments made in the previous 12 months in respect of commonhold assessment, reserve fund levy and insurance (if not covered by a request for commonhold assessment)
The name and address of any managing agent or other person appointed or proposed to be appointed by the commonhold association to manage the commonhold
A summary of current or proposed works affecting the commonhold.
Optional Documents
Home condition report – contains information about the physical condition of a property
A legal summary
Home use / contents forms – include information on boundaries, notices, services, sharing with neighbours, planning permissions and other matters of interest. It is usual for sellers to declare which fixtures and fittings and other contents of the property are included in the sale, are excluded from the sale, or are subject to negotiation
Other documents – including searches such as rights of way, ground stability and actual or potential environmental hazards such as flooding and contaminated land. Sellers will also want to include guarantees and warranties for work already carried out on their homes.
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.
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.
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 five 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 your Buyers guide to Home Information Packs here
