Home Information Packs
Government Legislation that came into effect on August 1st 2007 now means it is
a legal requirement that some property going to market must have a Home Information
Pack (HIP). The introduction of HIP's is one of the most dramatic changes to the
property market for a number of years. This new legislation will fundamentally affect
how estate agents sell property and also how & when you, as a vendor will be
able to market your property.
At Foley & Davis, we are very much aware of the impact a change like this new
legislation may have. We have spent a great deal of time carrying out extensive
research to ensure we are able to offer all of our clients and potential
clients a number of solutions to suit their requirements. We would welcome the opportunity
to discuss any concerns or indeed answer any questions you may have regarding
HIP's. For your information, over the next few paragraphs you will find a guide
to the Home Information Packs.
We also offer a "Home Navigator" service, a revolutionary home buying system based
on Microsoft's Virtual Earth platform; this allows potential buyers sophisticated
2D and 3D viewing options, including a 'bird’s eye' view of the property you are
interested in, its surroundings and local points of interest together with
valuable information about the local area. Try it by clicking on the link below.
HIPs explained
What are HIPs?
Home Information Packs are designed to help make the buying & selling process
easier, faster and less stressful.
Information about a property is gathered in advance and compiled into a pack so
that the seller, estate agent and potential buyers can all be reassured there are
no problems in key areas and can make informed decisions.
The pack is produced in printed or electronic formats so it can be easily read,
downloaded or sent by post or e-mail.
From 1st August 2007, it will be a legal requirement for properties with 4 bedrooms
or more to provide a HIP before marketing can commence. The government hope to phase
in the 1,2, & 3 bedroom properties by the end of 2007.
What is in a HIP?
It is mandatory that a HIP contains the following:
- An index (a list of the contents of the pack)
- A sale statement (summarising the terms of the sale)
- An Energy Performance Certificate (this rates the energy efficiency of the property)
- Evidence of title (proof you own the property)
- Standard searches (local authority, drainage & water)
- Where required – Commonhold information, including a copy of the commonhold<</li>
- community statement (for example, where owners of flats own a share of the Freehold
and are collectively responsible for the upkeep of communal areas)
- Where required – Leasehold information, including a copy of the lease and information
on service charges and insurance.
- Where required – New Homes Warranty (NHBC Certificate)
- Where required – A report on the new home if it is not yet constructed. As the legislation
stands currently, we will be able to market a qualifying property once a pack is
produced and contains an Energy Performance Certificate, sale statement, evidence
of title and index – and there is at least evidence that the other documents have
been commissioned if they are not in the HIP. For example, a letter from a HIP provider
confirming that an agreement has been entered into to provide the missing documents
as soon as practicable and within 28 days except in exceptional circumstances. If
this takes longer than 28 days HIP providers will be expected to demonstrate that
they have made all reasonable efforts and enquiries to obtain them.
In addition, a HIP is also authorised/allowed to include:
- A Home Condition Report (similar to a basic survey)
- Guarantees and warranties (e.g. damp & timber treatment)
- Home Contents Form (a list of what is included with the property)
- Home Use Form (similar to the current sellers property information form)
- Copies of planning consents, building regulations etc.
- Other searches.
It should be noted that no other documents can be included in a HIP other than those
either required or authorised as listed above. Property particulars, photos, sales
information etc must be supplied outside of the pack.
Who has to have a HIP?
The legal responsibility for having a HIP lies with the person marketing the property.
Normally this will be the estate agent, i.e. First Point Properties; however in reality
there will be a shared responsibility between the seller and us, the estate agent
to ensure a HIP is in place for potential buyers to see when they want to view the
property.
If you do not use an estate agent then it will be your responsibility solely to
organise a HIP before you try marketing your home, whether that is online or even
on a post card in the window of your local shop!
How do i go about getting a HIP?
It really is quite simple. We can advise you about the best way to proceed and will
be able to order your HIP instantly online on your behalf as part of the agreement
to start marketing your property. We use a proven system with our partners at LMS,
so you can be confident that your HIP will be put together quickly and accurately
using the very latest technologies and processes.
Is a HIP worth having?
This point is currently being hotly debated!! If the legislation regarding HIP's
does finally happen, then what they are basically doing is transferring some of
the costs from the buying side to the selling side to help speed up the process
and help buyers make an informed choice. Whilst this is a change from the current
system and if you are selling and wondering what benefit is there to you......it
is worth remembering that the property you wish to buy will also have had a HIP
prepared on it and so this will reduce the costs of buying accordingly. But, lets
just wait and see! If you require any information or advice as to whether your property
is HIP qualified, please contact us and we will be delighted to help.
For further information, or to discuss HIP’s or any other property related matter,
contact First Point Properties and we will be happy to assist you.