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HIP's |
What's in a Home Information Pack?
The Home Information Pack contains important information that buyers and sellers need to know.
Properties marketed for sale from 14 December 2007 in England and Wales need a Home Information Pack.
Benefits for sellers
For sellers, providing a Pack upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home.
Benefits for buyers
For buyers, the Pack provides essential information about properties they are considering buying, free of charge.
What does a Pack contain?
- Compulsory documents ('Required') - for example, the evidence of title that proves it's yours to sell.
- Optional documents ('Authorised') - such as the Home Condition Report which gives buyers a clear idea of what work, if any, needs to be done to the property.
Do I need a Pack?
You do not need a Home Information Pack for:
- Properties where there is no marketing (e.g. sale to member of your family)
- Non-residential properties
- Seasonal and holiday accommodation
- Mixed sales (e.g. shop with flat)
- Right to buy and similar sales
- Sales of portfolios of properties
- Properties not being sold with completely vacant possession
- Unsafe properties and properties to be demolished.
- Properties already on the market when the duty to have a Pack arises (1 August for sales of homes with 4 bedrooms or more, and 10 September for sales of homes with 3 bedrooms or more)
For more information on exceptions, see:
Factsheet on sub-divided buildings, portfolios and annexes (PDF - 1MB, 25 Jun 2008) with example scenarios of when these properties may be exempt from needing a HIP
Issue 28 (PDF, 16 Jan 2008) of the HIP newsletter PROGRESS
Sellers' frequently asked questions
When do I have to provide a HIP?
Properties marketed for
sale from 14 December 2007 in England and Wales will need a Home Information
Pack (HIP), which includes a home energy rating.
The Pack includes an Energy Performance Certificate, containing advice on how to cut carbon emissions and fuel bills. Also included are documents such as a sale statement, searches and evidence of title.
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.
At this stage no such date has been set when all properties that are on the
market will be required to have a
HIP.
What goes in a HIP?
A HIP
includes documents that are required when homes are bought and sold. Some
documents are mandatory and others optional.
The mandatory documents are:
- An index (ie a list of the contents of the HIP)
- A sale statement (summarising the terms of sale)
- Evidence of title
- Standard searches (ie local authority enquiries and a drainage and water search)
- An Energy Performance Certificate (EPC)
- Commonhold information (where appropriate)
- A copy of the lease (where appropriate)
Documents that are optional include:
- A Home Condition Report (HCR)
- Additional leasehold, information
- Guarantees and warranties
- Other searches relevant to the particular area
Who compiles HIPs?
Sellers can hire estate agents,
solicitors, separate pack providers, or do it themselves.
Are HIPs required across the UK?
No - only in England and
Wales
I'm selling my house privately - do I need a Home Information
Pack?
If you are marketing your property, even if it's just by
putting a 'for sale' sign in the window, you need a Pack. Sales where no
marketing takes place (e.g. to a member of the family) won't need a Pack.
Who pays for the Pack?
The seller is responsible for the cost of a
Home Information Pack. The cost of the Pack is down to the market, but sellers
will often be able to defer costs until late in the sale.
How will I pay for the Pack?
This depends on the agreement between
the seller and the compiler of the Pack. Some examples of the ways that Packs
might be paid for are as follows:
- Seller pays for the Pack upfront from estate agent, solicitor or Pack provider
- Seller compiles the Pack and pays each organisation for the relevant component (e.g. the Land Registry for the title document)
- Estate agent offers the Pack to the seller on a 'no sale, no fee' basis, where the cost of the Pack could be included in the estate agent's commission
- Estate agent offers the Pack to the seller on a 'buy now, pay on completion' basis, which is usually a credit agreement for three or six months between the seller and the organisation compiling the pack.
- These are only indications of payment models; the Pack regulations do not prescribe any particular payment method.
See What's in a Home Information Pack? for more information
Do I have to put electrical certificates in my Pack?
Electrical
certificates (past or present) are not a required component of the Pack, but can
be included if the seller has them.
I've lost guarantees of work I have had done - what do I do?
Don't
worry - guarantees aren't a required component of the Pack, but can be included
if you have them.
Should the pack include a Home Condition Report?
A Home
Condition Report could help you sell your property more quickly if it shows that
it is in good condition, or if it highlights any problems straight away for
potential buyers, it can avoid nasty surprises for buyers later in the
process.
My house has been on the market before HIPs came in. If I change
Estate Agents now, do I have to get a HIP?
If your house has not
been taken off the market i.e. continuous marketing has occured, then no, you
will not need to commission a HIP. If however, there was a break
in marketing you will need to supply a HIP.
Buyers' frequently asked questions
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 during
which marketing is allowed to start without a HIP, then the HIP must be
commissioned and paid for (or arrangement for payment made) with the expectation
that the documents will arrive within 28 days before marketing can begin. During
this period, which ends on 31 December 2008, the EPC must be provided as soon as
possible and before exchange of contracts at the latest.
If a
property which falls within the scope of the scheme is first marketed from 1
January 2009 onwards, a HIP including the EPC should be available from the time
it is first placed on the market.
What can I do if a HIP/EPC
isn't provided?
Except in relation to properties first placed on
the market during the temporary period, which ends on 31 December 2008, which
are being marketed without Packs, potential buyers have a right to a copy of the
Pack and this should be provided within 14 days of request. Sellers are entitled
to make a reasonable charge to cover copying and postage costs and may also
refuse to provide a copy in certain limited cases. These are where the seller
believes that the person making the request:
- could not afford the property;
- is not really interested in buying the property
- is not a person to whom the seller would wish to sell the property (but this does not allow them to unlawfully discriminate against someone).
If you believe that you are being denied a copy of the pack unlawfully, local authority trading standards officers are responsible for enforcement of these duties.
How much does a Home Information Pack cost?
Copies of Packs are
free to buyers, although a reasonable charge may be made for copying and
postage.
What can I expect to see in my Pack?
The following
documents are compulsory and must be included in a Pack :
- Home Information Pack Index
- Energy Performance Certificate
- Sale statement
- Standard searches
- Evidence of title
Additional information for leasehold and commonhold sales, where appropriate.
You can also include other documents such as a Home Condition Report, an environmental or flood risk search and other information that would be of interest to a potential buyer as defined in the regulations. Take a look at What will a Pack look like?
Who compiles HIPs?
Sellers can hire estate agents,
solicitors, separate pack providers, or do it themselves.
Are HIPs required across the UK?
No - only in England and
Wales.
Who pays for the Pack?
The seller is responsible for the
cost of a Home Information Pack. The cost of the Pack is down to the market, but
sellers will often be able to defer costs until late in the sale. Some providers
may offer free packs, or a no-sale, no-fee arrangement.