Sales HIPs Information
A HIP contains a collection of important documents that are required when houses are bought and sold. These include various legal searches, land registry documents and an energy performance certificate (EPC), which is intended to inform sellers and potential buyers how ‘green’ a house is. These are the 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.
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 seller’s discretion:
Mandatory
- Index of the documents contained within the pack
- Energy Performance Certificate (EPC)
- Sales statement summarising the property details & terms of sale
- Evidence of title from the Land Registry
- Local Authority searches and a drainage and water search
- On leasehold properties, key information re the lease and the management company
The elements in bold will be required before a property can be marketed from 1st January 2008. The other elements are required within 28 days of marketing, but most will be available much quicker than this.
Optional
- Home Condition Report (HCR) – a new form of survey
- Any warranties or guarantees that exist for the property (i.e. new roof guarantee, NHBC certificate)
- Other legal documents which will be required for conveyancing, such as the Home Use Form (currently the Sellers Property Information Form or SPIF) and the Home Contents Form (currently the Fixtures and Fittings form)
- Other legal information which will be required for conveyancing (part of the current process) such as environmental, flood and ground stability (mining) searches.
The other optional legal documents, especially the Home Use form, could certainly help speed up the conveyancing process once an offer has been accepted – and they do not cost anything to include, just a bit of extra effort.
Whites or your solicitor will advise you on whether you should include any of the optional documents
PROPERTIES WHICH DO NOT REQUIRE A HIP
- Properties where there is no marketing (e.g. sale to a family member)
- Non-residential properties
- Properties over 5 hectares where the land is used for horticulture or cultivation – basically farm-type properties, not houses with large grounds.
- Seasonal and holiday accommodation
- Mixed sales (e.g. shop with flat)
- Right to buy purchases
- Sales of portfolios of properties
- Properties not being sold with vacant possession
- Unsafe properties and properties to be demolished
What is an Energy Performance Certificate (EPC)?
An EPC will inform 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 costs of doing this and how quickly these will be recouped through reduced spending on energy.
The EPC will be prepared by a Domestic Energy Assessor or a Home Inspector, all of whom have been trained and are licensed via a Government Certification Scheme.
How much does a HIP cost?
This will vary according to the type of HIP you have (for example if you include any authorised documents) and whether your property is freehold or leasehold. We will be able to provide you with an 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.
How long will it take to put my property on the market?
A property can be marketed as soon as a HIP has been ordered (proof of this is required). After that date the property can be offered for sale as soon as the EPC and land registry documents are ready. In most cases producing these documents should take 7 days or less. The rest of the documents (searches and leasehold documents) have to be assembled within 28 days of marketing the property.
What happens if I take my property off the market?
A HIP is valid for one year from the date that the property is first marketed. You can take the property off the market and put it 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 Whites.
Do I have to update my HIP?
There is no obligation on you or Whites 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 responsibility of the buyer's solicitor to check if any documents need renewing.
The Home Information Pack Website contains much more detailed information if you have any other questions
