What is A
HIP?
Why do
I need a HIP?
What types of
buildings require a HIP?
What is required in a
HIP?
What do I need to include in my sales
statement?
How do
I make the HIP available to buyers?
When should the
HIP be produced?
How long does a
HIP last for?
Do I need to update
the HIP?
What do I
need to do with the Property Information Questionnaire
(PIQ)?
Where can I
find more information?
What if you
are renting a property?
What is A
HIP?
The Home Information Pack (also known as the HIP) is a
collection of documents that provides a buyer with key information
on the property and must be provided by the seller or the seller's
agent. This is compulsory for all homes on the market in England
and Wales.
Back to top >
Why do
I need a HIP?
The Home Information Pack is compulsory for most homes on the
market in England and Wales.
The benefit to the seller is that this process makes it easier
for buyers to make an informed decision on the quality of the home
and reduces the risk of problems occurring later.
One of the aims of the HIP is also to raise awareness of the
energy efficiency of our homes and, as a result, tackle climate
change.
Back to top >
What types of
buildings require a HIP?
From 6 April 2009, the HIP must be available on the first day a
property is marketed for sale.
You will not require a HIP if you are selling:
- a non residential property;
- residential properties which are unsafe
or due for demolition;
- mixed commercial and residential
property;
- a portfolio of residential properties
sold as a single lot;
- right to buy and similar
sales;
- properties sold without complete vacant
possession (e.g. with a sitting tenant who will remain living in
the property after the sale);
- to a family member, neighbour or friend
where no marketing has taken place.
Back to top >
What is required in a
HIP?
The following documents are mandatory within a Home Information
Pack:
- Index:
this lists the documents in the pack and acts as a checklist for
all parties involved in the sale.
- Predicted Energy Assessment
(PEA):
for newly built homes that are usually marketed before they are
complete. This should be replaced by a full EPC when the home is
built.
- Energy Performance Certificate
(EPC):
this shows a property's energy efficiency, recommends ways to
improve efficiency and explains its environmental impact in terms
of carbon emissions. An EPC derives from the Standard Assessment
Procedure (also known as SAP assessments). If your property is
already built, you will require an RdSAP to obtain your
EPC.
- Sale statement:
basic information about each individual property.
- Standard
searches:
these include local land registry charges, other records held by
the local authority and provision of drainage & water services
to the property.
- Evidence of
title:
to prove that the seller owns the property.
- Code for Sustainable
Homes:
a HIP for a newly built home must have a certificate (or interim
certificate) showing the rating that the home has received in
reference to the Code for Sustainable Homes.
- Property Information
Questionnaire (PIQ):
from 6 April 2009, a PIQ will be required, providing a summary of
information about a property, which will further aid buyers to make
an informed decision on purchasing the home.
- Copy of the
lease:
for leasehold properties, where applicable.
Optional documents
- Home Condition
Report:
describes the property's physical condition.
- Additional leasehold
documents:
such as information on service charges.
- Legal summary:
provides a plain English explanation of legal information in the
HIP.
- Home use/content
forms:
provide information on boundaries, notices, services, sharing with
neighbours, planning permissions, fixtures/fittings/contents
included in the sale.
- New Home
Warranty:
certificate of insurance from your warranty provider.
- Other documents:
such as non-standard searches, rights of way, guarantees for
maintenance and renovation work carried out.
Back to top >
What do
I need to include in my sales statement?
A sales statement needs to state the following and should be typed
on company headed paper:
- What is the address of the property to
be sold?
- Is the property freehold, commonhold or
leasehold?
- Is the title to the property registered,
unregistered or not yet registered but there is another registered
title for the land?
- Who is selling the property? The owner
or owners / a representative with the necessary authority to sell
the property for an owner who has died / a representative with the
necessary authority to sell the property for a living owner (or
owners) / other (further details will be required).
- Is the property being sold with vacant
possession or with one or more occupants in a sub divided
building?
For an example of a sales statement, please have a look at our
sample HIP available in the download section.
Back to top >
How do I make
the HIP available to buyers?
The responsible person (i.e. the seller or the seller's estate
agent) can make available an electronic version of the HIP if this
satisfies a potential buyer who asks for a copy. Otherwise, a paper
copy must be provided.
Back to top >
When should the HIP be
produced?
A Home Information Pack (HIP) must be available when you start to
market the property. At this time, reservations can usually be
taken for individual properties and the HIP is designed to help
buyers make better informed decisions.
Back to top >
How long does a HIP last
for?
The seller does not have to renew their HIP as long as the
property remains on the market. If the seller decides to stop
marketing their home, they can go back on the market with the same
HIP provided they do so within 12 months of the first point of
marketing.
Even after one year, if a property is taken off the market where
an offer has been accepted only for the transaction to fall
through, the seller can go back to the market with the original HIP
as long as remarketing starts within 28 days of the sale falling
through.
If the property is not remarketed within 28 days, the HIP will
need to be re-commissioned. This is because the legislation sets
limits on the age of mandatory documents when they are included in
the HIP. It may be possible to reuse the Energy Performance
Certificate as long as it is not more than three years old.
Back to top >
Do I need to update the
HIP?
If the searches are more than 3 months old and the property is not
on the market yet, then the searches will not be valid and you must
request them again.
While the property is on the market continuously, the HIP contents
do not have to be updated, except to replace the PEA with an EPC
when it becomes available.
Back to top >
What do I need to do
with the Property Information Questionnaire (PIQ)?
Sellers must answer all questions within the PIQ for it to be used
within the HIP. The HIP is not complete until the PIQ is
included and therefore you will not be able to market your
property. We advise that you think about gathering the
information needed to fill out the PIQ as early as possible to
ensure it is completed for when you want your property to go on the
market.
Buyers can use the PIQ to make a well informed decision on their
choice of home. It is also useful as buyers can use the information
to ask questions regarding things such as council tax, heating, car
parking arrangements etc.
Back to top >
Where can I find more
information?
You will find additional guidance in our Guide to Home Information
Packs available in the download section.
Alternatively, if you go to our Links page you will find a range
of websites that offer further information regarding HIPs.
Back to top >
What if you are
renting a property?
Rented properties do not need a HIP, however, you will need an
Energy Performance Certificate (EPC). This document will last for
10 years and only needs to be shown to new tenants; you don't need
a new EPC every time a new tenant moves in.
Back to top >
HipShop can also provide EPCs for
your rented properties. Fore more info, click here or contact us on 0845 055
0572 to speak to our customer service team.