Frequently Asked Questions - HIP's
1. What is a HIP?
The Housing Act of 2004 states that all houses to be put up for sale must have a completed Home Information Pack, these are designed to speed up the home buying process by making sure the seller has sufficient information about their property before marketing the property for sale. The HIP should include:
- Home Information Pack Index - A simple check list of what the pack contains for buyers, sellers, estate agents and enforcement authorities.
- Terms of Scale
- Evidence of Title - These documents prove that the seller owns the property and therefore has the right to sell it.
- Standard Searches - The local land charges register relating to the property being sold; if the search is carried out by a local authority then an official search certificate will be provided. Other records held by the local authority on matters of interest to the buyer, such as planning proposals or decisions. The provision of water and drainage to the property.
- Planning Consents and Building Control Certificates
- Property Information Form - Giving sellers the opportunity to provide the buyer with any outstanding relevant information about the property.
- Warranties and Guarantees
- Home Condition Report - Containing physical information about the property (Though this is not currently mamdatory)
- Energy Efficiency Assessment.
2. When do I start using them?
1st August 2007. Though currently, this only applies to houses with 4 or more bedrooms.
3. How much does a HIP cost?
The cost to the seller will range from a minimum of £400 to a maximum of £1000 depending upon the area in which one lives and the size of their property, although it is expected that the average cost to a seller will be around £635.
4. Why do I need a HIP?
The failure to possess a HIP is illegal, the government implied this law following its 1997 manifesto communication to ‘make it easier for people buying and selling homes through a new sellers pack,’ it is expected that the pack will speed up the buying process and stop sales falling thorough.
Currently £350 million is wasted each year on aborted transactions, it is expected that the implication of HIPs will substantially reduce the number of failed transactions.
5. Do I need a HIP if I am buying a house?
No . For buyers, the pack provides essential information about properties they are considering buying and reduces the chances of unwanted surprises later on in the purchasing process.
6. Where can I get a HIP?
For sellers, a home information pack can be prepared by an estate agent, a solicitor, a HIP provider or can be prepared by you; the seller is responsible for paying for the pack and its contents.
A prospective buyer can obtain a HIP where the property concerned is being advertised, either by an estate agent, a business or an individual.
We at Keppe Rofer are able to provide you, as a client, with a Home Information Pack. For further advice, contact our office on 01874 624627 or email us at enquiries@kepperofer.co.uk.
7. What is an EPC?
An Energy Performance Certificate identifies how energy efficient a property is on a scale of A - G with the most efficient properties being rated in band A. It is guessed that these properties will also have the lowest running costs.
A second rating will also be shown on the certificate, the environmental impact rating, measuring the homes likely impact on the environment with regard to carbon dioxide emissions. This rating will be measured on an A - G scale, with properties in the A band having less impact on the environment.
An energy performance certificate will give prospective buyers a more substantial perception of the likely energy costs of occupying a particular property.
8. How long is a HIP valid?
The HCR may not be more than three months old when the property is first put on the market and no other component of the pack should be more than 12 months old on the day the property first goes on sale. There is no need to update a HIP while the property is on the market.
9. Can I sell my house without a HIP?
As regulations stand, a HIP is not required in the following circumstances:
- Where there is no marketing of a property
- Where the property is non-residential
- For seasonal and holiday accommodation
- For a property of mixed or dual use
- Where there is a portfolio of properties being sold to a single buyer
- Where the property is not being sold with vacant possession
- For unsafe properties or properties to be demolished
10. I own a flat which I want to sell; do I need a HIP to sell my flat?
Hips will be implemented in stages as of 1st August 2007, the first stage concerning only propertiesof four bedrooms or larger, with smaller properties being phased in a soon as sufficient energy assessors are fully qualified.
11. Can a home be sold with elements of the HIP missing?
Marketing can start with an incomplete pack when certain required items cannot be quickly obtained, however as soon as these items can be acquired they should be included, failure to provide a complete pack carries a £200 fine.
While there are compulsory items to be included in the pack, such as the HIP index, EPC, sale statement, standard searches and evidence of title, there are optional items in the pack which can be provided on a voluntary basis i.e. HCP, legal summary and home use and consent forms.
12. If a sale falls through, can the HIP be re-used?
Should the sale of a property fall through then the seller would be required to assemble a new pack and update documents which are now out of date. However, it is possible to continue to use the same pack should a sale fall through if remarketing starts within one year of the property first going on the market or within 28 days of the sale falling through.
13. Do I need a HIP for a commencial building?
No. Properties that are classed as a business under the planning regulations and that will remain a business at legal completion do not require a HIP.
14. What is a HCR?
A Home Condition Report is an objective report on the physical condition of a property, covering matters of importance to a buyer i.e. age, location, character, energy efficiency and any other defects requiring attention, by a qualified home inspector.