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HIP
Provider Information Home Packs UK |
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Home
Pack Guide & free Home information pack provider information, find out about how
the information pack will change home buying and selling.
Home
Information Pack Home Seller
statement to include:
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EPC
or Energy Performance Certificate
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Home
Inspection Surveys
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Home
warranties and guarantees
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Property
Search information
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Evidence
of Title for the property
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Evidence
of planning consent where required
The Home
Information Pack or HIP as it is now known will be introduced on August
1st 2007. Homeowners whether home buyers or sellers need to familiarise
themselves with a HIP and the information they provide.
There are many websites available on this subject but we have condensed
the information for buyers, sellers and what Hip providers gather here.
You may wish to take part in our Home Information Packs
Poll.
What’s in a HIP?
Home Information Packs contain important information that buyers and
sellers need to know about the property that is for sale. Anyone
marketing a property from August 1st 2007 will be legally required to
provide a pack and make the pack available to potential buyers of the
home.
For sellers, providing a HIP upfront should reduce the likelihood of any
surprises in the selling process that could delay the sale, as buyers
can make an informed decision prior to making an offer on the property.
For buyers and sellers the home pack provides information about
properties they may be considering buying free of charge.
What does a HIP contain?
There are a number of items within the Home Information Pack that are compulsory and
several which are optional for the home seller to provide.
HIP Compulsory Documents See Also: Home
Condition Reports
The following documents are mandatory and must be included in a home
information pack.
Information Pack Index – this is an index of the contents of the
pack.
Energy Performance Certificate – or EPC is provided by a home
inspector known as a DEA or Domestic Energy Assessor. The home is
inspected to ascertain the energy rating of a property, briefly the
inspector surveys the property to assess heat losses in the property,
many factors are taken into consideration including the age of the
property, the floor area, the type of construction of the building, the
type of glazing, heating system and heating controls, insulation levels
including the wall construction and loft insulation. Together this forms
a “SAP” rating (standard assessment procedure) which is based on
three principles the space heating, the type of heating, and the levels
of insulation. These parameters are entered in to computer software
which then generates an Energy Performance Certificate.
The certificate has been designed to look similar to appliance ratings
as provided for white goods e.g. fridges and freezers etc. The
certificate is based on a scale of A to G, where a rating of G is the
lowest rating and A the highest rating of energy efficiency. These
ratings provide information on how the home has an impact on the
environment and also the projected fuel costs for electricity and gas
per annum. For example, a home with a rating of B should have lower fuel
costs than a home in say band E. The same scales are applied to the
carbon emission ratings. However most homes in the UK will fall into the
range D-E for both ratings. In addition the EPC includes recommendations
to improve the efficiency of the home to save you money on utility bills
and also to help the environment, this is also included in the home
information pack.
Home Information Pack Sale Statement - This statement should provide some basic information
about the property and site, which includes:
1. The name of the seller and the address of the property being sold.
2. Whether the property is freehold, leasehold or common hold.
3. Whether the property is registered or un-registered.
4. Whether or not the property is being sold with vacant possession.
Standard Searches – the Home Information Pack must include:
1. The local land charges register relating to the property being sold.
Also, a copy of the local authority searches.
2. Other documents held by the local authority which affect the
property, such as planning decisions and road building proposals etc.
These are referred to as local enquiries in the home information pack
regulations.
3. The provision of drainage and water services to the property. The
local water company (E.g. for the Nottinghamshire area Severn Trent
Searches can be used) or, a personal search company can be used for this
purpose.
Evidence of Title – Documents to prove that the seller owns the
property and has the right to sell it. If the property being sold is
registered, specific documents are available through land registry for
this case, and these must be included in the HIP.
These up-to-date official records provide details of who owns the land,
and consist of:
1. Official copies of the individual register (consisting of a property
register, proprietorship register and, possibly a charges register.)
2. An official copy of the title plan.
Home Information Packs - In the case of a commonhold interest , official copies of the register
and title plan should be produced both for the unit and common parts.
Land Registery has details of additional requirements for the sale of
commonhold properties. For sales of unregistered land, the home pack
(HIP) must include copies of a certificate of an official search of the
index map (available through Land Registry), and those documents that
the seller intends to rely on to provide evidence of title to the
property, and therefore the right to sell it.
See also : DIY
HIP Home Information Pack
Further information on Leasehold property is available - The Leasehold Advisory Service provides free advice on the law affecting residential long leasehold property and Commonhold
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HIP
Optional Documents
There are some additional documents which can be optionally provided with
a Home Information Pack.
Home Condition Report
The Home Condition Report (HCR) is a voluntary part of the home pack; the
seller may supply a detailed survey report provided by a chartered
surveyor which will provide details of the physical condition of the
property, outlining any defects that may be present, and such a report
should be considered an accurate legal document both for buyer and seller. |
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Such a report is an important part of a HIP. Home sellers undertaking this
type of survey (although voluntarily) have the opportunity to carry out
repair work, or obtain a quote for repairs prior to marketing the
property.
Buyers may use the HCR to make an informed decision before making an offer
on the home they are considering buying, so they do not face any
unexpected repair bills if they do purchase the house.
House buyers could also use this information to possibly renegotiate the
asking price for a house that requires repairs.
Home Information Pack Summary
Home information packs will contain many documents, some are complex, the
optional elements of the pack could prove useful to buyers of homes, but
home buyers should also take legal advice as well.
Home use/ Fixtures & Fittings Forms
These forms let sellers give home buyers information on a range of matters
including boundaries, notices, services, sharing with neighbours, planning
permissions and other subjects which are of interest to the buyer.
The home seller should declare which fixtures and fittings and other
contents of the house are included in the sale, or are excluded from the
sale, or even which items are subject to negotiation.
Other documents – the sale of a property could be speeded up if they
include non-standard searches in the home information pack where
appropriate.
For example, it is standard practice to obtain a mining search in areas
where coal mining has taken place. Home sellers in these areas will save
time if they provide this search in the pack. Additional searches cover
rights of way, ground stability and actual or potential environmental
hazards (e.g. landfill sites, flooding or contaminated land).
Warranties & Guarantees.
Sellers may wish to include any building warranty or guarantee for work
carried out on their house, or in the case of a newly built home an NHBC
certificate.
Can I delay any HIP documents?
If certain documents are not available at the time the property goes to
market i.e. searches, evidence of title for unregistered home and
leasehold/commonhold information, sellers can begin marketing their home
with a pack where the HIP contains an index, sale statement, evidence of
title, EPC or Energy Performance Certificate only.
However the seller must be able to demonstrate that the missing items in
the home information pack (HIP ) have been commissioned and are expected
to arrive as soon as practicable – but no later than 28 days of the
property being placed on the market.
What happens if a property is placed on the market without a home
information pack (HIP )?
Currently, you may be liable for a fine of up to £200 if you place your
property on the market without any home information pack in place.
Enforcement is through trading standards officers.
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Home Information
Pack HIP
Optional Documents
There are some additional documents which can be optionally provided with
a Home Information Pack.
Home Condition Report
The Home Condition Report (HCR) is a voluntary part of the home pack; the
seller may supply a detailed survey report provided by a chartered
surveyor which will provide details of the physical condition of the
property, outlining any defects that may be present, and such a report
should be considered an accurate legal document both for buyer and seller. |
Do I Need A HIP?
Yes. Current
legislation requires that every property (with some exemptions – see
below), prior to being marketed requires a home pack (HIP).
Exemptions from HIP
A home pack is not required in the following cases:
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.
New build
Commercial property
Rented property controlled by landlord’s**
Social Housing
** Currently from October 2008 property in the rented sector will require
an EPC to be produced at each change of tenancy. Approx 2.5 million homes
may be affected by this change.
Home Information Packs - HIPs – How much does a HIP cost?
A complete home pack will cost approximately £350 - £500 depending on
regional variations. An optional home condition report may add a further
£500 to the cost. EPC cost will be approx £100 per household dependent
on UK regional variations and is included in the figures above. These
prices are intended as a guide and the type of house and location may
affect these estimates.
Home Information Packs - How long does a Home Pack last for?
While the property is on the market, there is no need to update the Home
Information Pack (ultimately, the market decides whether the documents
remain acceptable and up to date).
If the sale of your property ceases and then starts again, you would
normally be required to assemble a new HIP and to update those documents
which are now out of date according to the requirements of the Home
Information Packs. However, the seller can carry on using the same pack
without the need to update any of the documents in the following
circumstances:
Where marketing stopped because the seller accepted an offer and wants to
restart marketing because the sale has fallen through, provided that
remarketing starts within one year of the date when marketing first began
or, if later, within 28 days of the sale falling through.
Where marketing has stopped for any other reason, the seller may remarket
the property with the same pack provided that remarketing starts within
one year of the date when marketing first began or, if later, 28 days of
the date on which marketing stopped.
See also – How long is an EPC valid for. - Next
Some types of property are exempt from HIPs and EPC’s see exemptions
above. See also Home Information Pack Exempt
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