What is a HIP?
In August 2007, the Government introduced recent legislation aimed at facilitating the home-buying process for both Vendors and Buyers. The legislation led to the introduction of the Home Information Pack or HIP for all properties over 4 bedrooms marketed after 1st August 2007. However, as from 14th December 2007, this has been extended to all properties marketed after this date. What this effectively means is that, in order to market your property, you will require a Home Information Pack.
When is a HIP/EPC not required?
If the property is sold before the HIP is received, then this is no longer required but the Vendor is still legally obliged to provide an EPC to the Buyer at exchange of contracts or as soon as available.
What documents are required in the HIP?
Energy Performance Certificate (EPC) – this is a compulsory document provided by a Domestic Energy Assessor or Home Inspector (who should be registered or approved). The EPC gives details of the energy efficiency of the property and will also offer advice on how to improving energy efficiency, cutting emissions and fuel bills.
Index of Contents – this should also include explanations for any missing documents.
Sales Statement – a summary of the terms of sale, usually drawn up by a solicitor or conveyancer instructed by the Vendor.
Evidence of Title – If the property is registered, this will take the form of official copies of the register or title plan (copies of which are available from the Land Registry Office and usually subject to a fee. If the property is not registered, the documents required will be the official result of a search of the index map (SIM), again available at the Land Registry Office for a fee. In some instances, it may be necessary to also include whatever documents are relied on to show that the Vendor has title or the right to sell.
Local search – conducted either through the local Land Charges Department of the Local Authority or the National Land Information Service (NLIS) or a personal search company.
Drainage and water searches – through the local water supplier or NLIS or personal search company.
Leasehold or Common hold documents – where appropriate.
Home condition Report – this is an optional report conducted by a Home Inspector which gives details of the condition of the property.
Any guarantees or warranties
Home Contents or Uses forms – again these are an optional extra which the Vendor may wish to provide.
Additional searches - i.e. mining, environmental or flood risk required in particular areas.
What HIPs mean for you as the Vendor
The Home Information Pack provides key information needed by a potential buyer prior to commencement of the home-buying process and is designed to ensure a much smoother and quicker process. It allows the potential buyer to view all relevant documents before making an offer and provides answers to several key questions. A HIP ensures that your sale will not be hampered or delayed by local searches or the obtaining of crucial documents necessary for exchange of contracts.
Circumstances where an HIP is NOT required
No marketing is involved i.e. a private sale
Non-residential property
Seasonal/holiday accommodation
A mixed sale (i.e. shop and flat)
Right to buy or similar sale
Sale of a portfolio of properties
Complete vacant possession
Unsafe/demolished properties
Properties on the market prior to the requirements i.e. before 1/8/07 for 4 bedrooms and before 10/9/07 for properties with 3 bedrooms.
New Builds under Part L Building Regulations 2006.
What HIP means for the Buyer
The Home Information Pack (HIP) provided important information crucial to assisting the buyer in the decision of whether to proceed with the purchase of a new property.
You should ask us for a copy of the HIP for any property you are interested in and check that this is complete and that a satisfactory reason is given in the Index for any missing documents. We will obviously also assist in ensuring that any such documents are provided to you upon request as soon as possible.
The Energy Performance Certificate (EPC) provides information in respect of the energy efficiency of the property and may include further details regarding recommended improvements relating to cutting of carbon emissions or fuel bills.