Home Information Packs

Why a Home Information Pack?

From the June 1 2007 it will be compulsory to provide a Home Information Pack (or HIP) to any prospective buyer if you decide to sell your house. The aim of the Home Information Pack is to simplify the house buying and selling process for all parties involved. In the present climate, information in relation to the property is only discovered after prospective buyers have spent money on surveys and searches – the Home Information Pack will provide this information immediately saving buyers money and time. It is also hoped that the whole transaction will become shorter and that, in turn, it will be harder for gazumping to take place. The HIP will only apply to residential properties and must still be provided even if you arrange a private sale and no estate agents are involved.  Failure to provide a HIP when selling your property may result in a £200.00 fixed penalty.  Provisions have also been made to be able to provide the HIP electronically as well as being available as a hard copy. However, the HIP can only be provided electronically if the prospective buyer agrees.

What is included in the Home Information Pack?

The HIP will consist of documentation that is compulsory and some documentation that is voluntary.  Although all of the compulsory documents have been passed by Parliament there may need to be some amendments as the Home Condition Report (survey) is no longer to be included in the pack and the Buyer will have to source their own.  If your property is Freehold the following documents will HAVE to be produced as part of the Home Information Pack:

  • an index of all of the documents contained within the HIP – this must also include any changes that have been made to the pack since its formation;
  • particulars of sale;
  • official copies of the title and plan of the land that are obtained from the Land Registry;
  • if the property is unregistered a search of the Index map must be provided along with the unregistered title documentation;
  • Any warranty for the property – such as NHBC, Zurich, etc;
  • an energy performance certificate – this is a document that is in a similar fashion to those ratings that you see on household appliances and will take into account things such as insulation and double glazing;
  • the local search;
  • the drainage and water search;

 

If the property is Leasehold, the following documents will be required in addition to those listed above:

  • a copy of the lease – preferably an official copy from the Land Registry;
  • the past three years service charge information (if applicable);
  • the most recent demands for service charges / ground rent and insurance within the last twelve months;
  • name and address of current landlord and / or management company;
  • details of any proposed changes to the Lease and / or any works that are to be undertaken.

 

If the property is Commonhold the following documents are a requirement as well as those listed in the Freehold section:

  • an official copy of the title and plan to the common parts;
  • an official copy of the Commonhold Community Statement;
  • any other regulations that may affect the building of which the property forms part;
  • any requests for commonhold assessment or insurance for the previous twelve months;
  • the name and address of the managing agents;
  • any amendments proposed to any of the Commonhold information and details of any proposed works.

 

In addition to all of the above the HIP may also contain the following voluntary documentation:

  • any documents that may be referred to in the title of the property;
  • warranties and guarantees in relation to works carried out on the property, such as a damp proof course;
  • any additional searches such as an environmental search, Chancel repair check or coal mining search;
  • replies to standard pre-Contract enquiries;
  • further copies of the pack in an alternative language or Braille / large print.

 

There are also various other documents in relation to Leasehold and Commonhold properties that may be added to the pack voluntarily.

If you are buying a new build property it has been designated as a property that is being sold off plan or a property that is physically complete for the purpose of the HIP.  Even if the property is newly build the HIP must be prepared as though the title already existed.

 

When do I not need a HIP?

A Home Information Pack is not required for commercial properties, properties that are suitable for dual use, properties that are deemed to be unsafe and properties such as a shop with a flat above.  Property developers who are selling a portfolio as one lot or who are selling a property to be redeveloped  do not need to supply a HIP.

 

Where do I get a HIP from?

Your solicitor is able to provide a HIP for you if you wish to sell your property.  Many of the search providers are expanding their businesses to incorporate the Home Information Pack. Independent solicitors are joining forces with these companies so that their existing and new Clients can continue to receive the same service that they would expect from their conveyancer.

Your estate agent and / or surveyor will also be able to point you in the right direction of someone that can provide you with your pack.

 

How much will a HIP cost?

At present there are no definitive costs available.  The Government has estimated that the cost of a HIP for an average property may be around £600.00. However, leasehold properties and properties of a particularly high value will no doubt end up costing more due to the nature of the documentation involved.

The majority cost of the HIP will be for the documents such as the searches, title documents and energy certificate.  If the Home Condition Report is re-introduced there will be extra costs for that. 

The only costs to the buyer will be if they request the HIP in paper format rather than the electronic format – the seller may charge for the cost of copying and postage.

 

There will be a five month period of transition after the Home Information packs come into force on June 1 2007 that will last until October 31.  If your property is already on the market on the day that HIPs comes into force a pack will not be required, however, if the property has not been sold by November 1 a HIP will then be required.