Are you ready for HIPs?
27th November 2009
From 14th December 2007 a Home Information Pack will be required for all properties being sold in England and Wales. 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.
Why do we need HIPs?
To improve the buying and selling process by giving buyers more information from the outset, so they can make informed decisions early on and will, therefore, help reduce the number of aborted transactions that take place
Your sale is much less likely to fall through as the buyer will have a lot of information about your property before even putting in an offer
You can proceed with the sale, confident that there is less likely to be any last minute legal problems, delaying completion
What’s in a HIP?
Registered freehold properties
These documents are compulsory before the Estate Agent is allowed to market you property
Index
Energy Performance Certificate
Sales statements
Official copy of the registrars and title plan
Home use form
Home contents form
Further compulsory documents required 28 days after the first point of marketing
Where part of the property is let or will become let on completion of the sale copies of any leases or licences to which the property is subject
Local land charges search
Local authority search
Drainage and water search
Sample of optional (authorised) documents
Home Condition Report
Official copies of documents referred to on the registrar of the property
Additional search reports
Any documents referred to in search reports
Leasehold properties
Compulsory before the Estate Agent is allowed to market
Index
Energy Performance Certificate
Sale statement
Official copy of the registrars and title plan
Home use form
Home contents form
Further compulsory documents required 28 days after the first point of marketing
A copy of the lease or leases, any deeds of variation and other leases or licences that are relevant or affect the title
Where part of the property is let on completion of the sale, copies of any leases or licences to which the property is subject
Any rules and regulations in force at the time made by the managing agent or landlord
Statement or summaries of service charges relating to the previous three years
The most recent request for payment of service charges, ground rent and insurance relating to the proceeding 12 months.
The name and address of the current or proposed landlord, of the managing agents or other person who may be likely to manage the property
Any alterations to the proposed lease or regulations
A summary of any works being proposed or undertaken that affect the property
Local land charges search
Drainage and water search
Sample of optional (authorised) documents
Home Condition Report
Memorandum and articles of associations of any company related to the management
Any lease relating to the property (head lease or under lease)
Any licence or tenancy affecting the property
Can I market the property without a HIP?
Marketing is allowed to start without a HIP for a temporary period provided a number of conditions are met. This is only during the initial introductory period.
These conditions must be satisfied before marketing:
The property was put on the market before 1 January 2008
Requests for all the required documents have been delivered before the property is put on the market
Requests have been made with the HIP provider for the documents. The application must also be accompanied by the appropriate payment or an undertaking to make the payment
Even where it appears that all the required documents are unlikely to be available , you need to make reasonable efforts to obtain them before then
How soon after commissioning a HIP will it be ready for buyers to view?
It is estimated that it will take under 14 days but the Government expect all HIPs to be issued within 28 days.
My property was on the market prior to September 2007, do I require a HIP?
Any property that was on sale prior to HIPs being introduced that is still available for sale after the 1st January 2008 will require a HIP.
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 continuous marketing of your property has taken place and it has not been taken off the market for a period of 28 days or less then a new HIP is not required. If however, there was a break in marketing of 28 days or more you will need to commission a new HIP.
What is an Energy Performance Certificate (EPC)?
The government aim of the EPC is to promote increased awareness of energy consumption and how people can reduce their carbon footprint. The new EPC will asses homes with an energy performance rate of A to G. To rate a persons home, a detailed survey must be carried out by a 'Domestic Energy Assessor'.
How do I get a HIP?
You can ask your Estate Agent to organise the HIP for you. Greene & Co have a number of suppliers that we already use, you will not incur any additional fees for requesting Greene & Co to organise. Alternatively you can arrange this for yourself. Click here for a list of recommended suppliers.
Who arranges the HIP?
If you instruct an Estate Agent who has a place of business in England or Wales to put your property on the market, the Estate Agent is responsible to arrange the HIP unless you undertake marketing the property yourself.
How much is the HIP?
The cost to sellers of Home Information Packs will be set by the market. This can depend upon the size of the property, whether it is leasehold or freehold or whether you choose to include any of the optional documents.
The costs will range from approximately £250 - £400. A Home Condition Report, if you choose to have one, will be an additional cost of approxiately £200.
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 5 hectares or more of land and the most recent use of the land was primarily for cultivation, keeping of livestock or woodlands.
Download your buyers guide to Home Information Packs here
Download your sellers guide to Home Information Packs here
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