next2sell - Home Information Packs

What is a Home Information Pack?

A HIP contains a collection of important documents that are required when properties are bought and sold. These include various legal searches, land registry documents, and an energy performance certificate (EPC), which is intended to tell you how “green” a property is. These are compulsory elements for all properties; leasehold properties require additional information and there are various other documents and reports that can be included if you wish

What is in a Home Information Pack?

There are two kinds of documents that a HIP may contain; those that are required (mandatory) for all properties and others that are authorised (optional), to be included at the sellers discretion.

Mandatory

• Index of the documents contained within the pack
• Energy Performance Certificate (EPC)
• Sales statement summarising the property details and terms of sale
• Evidence of title from the Land Registry
• Local Authority searches and a drainage & water search
• On leasehold properties, key information re the lease and the management company

Optional

• Home Condition Report (HCR) – a new form of survey
• Any warranties or guarantees the you have for your property, (i.e. new roof guarantee NHBC certificate)
• Other legal information, which will be required for conveyancing (part of the current legal process) such as environmental, flood and ground stability (mining) searches.

next2buy Ltd will advise you on whether you should include any of the optional documents.

Do all residential properties need a HIP?

From 14 December 2008 the vast majority of properties do need a HIP. There are a few exceptions, such as mixed use properties (i.e. a shop and flat) and properties that are to be sold with an existing tenancy agreement. Again, next2buy Ltd will advise you if you do not require a HIP.

What is an Energy Performance Certificate?

An EPC will tell buyers and sellers about a home’s energy efficiency, using A to G ratings like those used on appliances such as washing machines and refrigerators. The certificate will also specifically show, for each individual property, various improvements that could be made to cut fuel bills and carbon emissions, the cost of doing this and how quickly these will be recouped through reduced spending on energy.

How much will a HIP cost?

This will vary according to the type of HIP (for example if you include any authorised documents). next2buy Ltd will provide you with a competitive estimate.

When will I have to pay?

There are a variety of ways to pay for a HIP, many of which allow you to defer payment until your house is sold. next2buy Ltd will explain the options, advantages and disadvantages.

What happens if I take my property off the market?

A HIP is valid for one year from the date that the property was first marketed. You can take the property off the market and put it back on again within a year using the same HIP. However, you will need to consider the terms on which the HIP was provided to you and your contract with your estate agent.

Do I have to update my HIP?

There is no obligation on you or your estate agent to renew anything in your HIP. If something significant happens whilst the property is on the market, then you may choose to do so, but it is the buyer’s solicitor’s responsibility to check if any documents need renewing.

www.homeinformationpacks.gov.uk contains much more detailed information if you have any other questions.