HIPs - Estate Agents Surveyors & Valuers in Hertfordshire, Trend & Thomas

HOME INFORMATION PACKS (HIP'S)

WHAT IS A HIP?
In August 2007, the Government introduced recent legislation aimed at facilitating the home-buying process for both Vendors and Buyers. The legislation led to the introduction of the Home Information Pack or HIP for all properties over 4 bedrooms marketed after 1st August 2007. However, as from 14th December 2007, this has been extended to all properties marketed after this date. What this effectively means is that, in order to market your property, you will require a Home Information Pack.

WHO IS RESPONSIBLE FOR PROVIDING THE HIP?
This is down to the individual responsible for marketing the property which will be, in most cases, the Estate Agent instructed by the Vendor; but can actually be the Vendor themselves. The HIP must be completed to a certain level by the time the property is placed on the market and an Energy Performance Certificate (EPC) together with any other relevant documents must be provided upon request.

WHEN IS A HIP NOT REQUIRED?

No marketing is involved i.e. a private sale
Non-residential property
Seasonal/holiday accommodation
A mixed sale (i.e. shop and flat)
Right to buy or similar sale
Sale of a portfolio of properties
Complete vacant possession
Unsafe/demolished properties
Properties on the market prior to the requirements i.e. before 1/8/07 for 4 bedrooms and before 10/9/07 for properties with 3 bedrooms.
New Builds under Part L Building Regulations 2006.

HOW LONG DOES THE HIP LAST?
There is no need to update the HIP whilst the property is on the market but in instances where the Vendor withdraws the property and it is later remarketed, a new pack will normally be required with the necessary updating of the documents in accordance with HIP regulations.

If the property is withdrawn as a result of acceptance of an offer by the Vendor and that offer subsequently falls through, the property can then be remarketed with the original HIP, provided that this is recommenced within one year from the date of the initial marketing date or, if later, then within 28 days of the sale falling through. In the event that the sale stops for any other reason, provided that the property is remarketed within one year, the existing HIP may be used.

WHAT DOCUMENTS ARE REQUIRED IN THE HIP?

The Energy Performance Certificate (EPC) - This is a compulsory document provided by a Domestic Energy Assessor or Home Inspector (who should be registered or approved) usually a member of the HIP Code and signed up to the Property Codes Compliance Board (PCCB) LINK. The EPC gives details of the energy efficiency of the property and will also offer advice on how to improving energy efficiency, cutting emissions and fuel bills - for more information about EPC's please click here.
Index of Contents - This should also include explanations for any missing documents.
Sales Statement - A summary of the terms of sale, usually drawn up by a solicitor or conveyancer instructed by the Vendor.
Evidence of Title - If the property is registered, this will take the form of official copies of the register or title plan (copies of which are available from the Land Registry Office and usually subject to a fee. If the property is not registered, the documents required will be the official result of a search of the index map (SIM), again available at the Land Registry Office for a fee. In some instances, it may be necessary to also include whatever documents are relied on to show that the Vendor has title or the right to sell.
Local search - Conducted either through the local Land Charges Department of the Local Authority or the National Land Information Service (NLIS) or a personal search company.
Drainage and water searches - Completed through the local water supplier or NLIS or personal search company.
Leasehold or Common hold documents
Home condition Report - This is an optional report conducted by a Home Inspector which gives details of the condition of the property.
Any guarantees or warranties
Home Contents or Uses forms – again these are an optional extra which the Vendor may wish to provide.
Additional searches - i.e. mining, environmental or flood risk required in particular areas.

HOW DO I ORGANISE/ARRANGE FOR MY HIP?
We can do this for you. Through our well-established relationship with a specialist HIP pack provider, we are able to assist you in arranging for your Home Information Pack and Energy Performance Certificate (EPC) in accordance with HIP Regulations. We will advise you on what documents are required and will assist with the appointment of your DEA/Home Inspector thus taking the stress out of marketing your home. The cost of providing the HIP will be advised by us and can either be payable to us or directly to the HIP Provider.

WHAT THE HIP MEANS FOR YOU AS A VENDOR
The Home Information Pack provides key information needed by a potential buyer prior to commencement of the home-buying process and is designed to ensure a much smoother and quicker process. It allows the potential buyer to view all relevant documents before making an offer and provides answers to several key questions. A HIP ensures that your sale will not be hampered or delayed by local searches or the obtaining of crucial documents necessary for exchange of contracts.

DO I HAVE TO PROVIDE A HIP TO ALL POTENTIAL BUYERS?
It is a requirement to make the HIP available to all potential buyers and we at Trend & Thomas will provide an electronic copy of the HIP to potential buyers on their reasonable request.

There are however a few exceptions where we will be entitled to turn down a request for the HIP without incurring any penalty:

Where you or Trend & Thomas as your Estate Agent feel the buyer cannot afford the property in question, we will request evidence of a financial arrangement or 'in principal' agreed mortgage. If this is not satisfactorily responded to we will be entitled to turn down a request for an HIP without incurring any penalty.
Where you, as the Vendor, simply do not wish to provide a HIP to a particular individual as you have no intention of selling to them (current regulations allow this to be refused without any reason).

WHAT A HIP MEANS FOR THE BUYER
The Home Information Pack (HIP) provides important information crucial to assisting the buyer in the decision of whether to proceed with the purchase of a new property. You should ask us for a copy of the HIP for any property you are interested in and check that this is complete and that a satisfactory reason is given in the Index for any missing documents. We will obviously also assist in ensuring that any such documents are provided to you upon request as soon as possible.

The Energy Performance Certificate (EPC) provides information in respect of the energy efficiency of the property and may include further details regarding recommended improvements relating to cutting of carbon emissions or fuel bills.

The HIP may also contain a Home Condition report which is an objective report voluntarily commissioned by the Vendor on the condition of the property.

Other documents included in the HIP are the results of searches and evidence of title, usually things which can impede the smooth running of the sale process.

COST FOR THE BUYER
It is not usual for the buyer to incur any costs with regard the HIP and the Home Information Pack will be provided electronically to you by Trend & Thomas acting on behalf of our Vendor.