About HIPs
Your HIP must be available to prospective purchasers at the point where you or your estate agent starts to market your property.
A HIP brings together documents providing information about a property, including energy efficiency, ownership and boundary issues, which in the past was not available to a potential purchaser until they had an offer accepted.
Before HIPs were introduced, the buyer’s solicitor had to research and collect these details, which in some cases led to deals being renegotiated or collapsing, often because the process took too long to complete.
HIPs are designed to make selling a property more efficient and transparent, by making all the information about a property available to potential buyers from the start. This enables them to make more informed decisions, with the aim of reducing the number of deals that fall through between an offer being accepted and contracts being exchanged.
A HIP remains valid for as long as a property is continuously marketed for sale. If the property is taken off the market, then subsequently placed back on the market at a later date, a new HIP will be required to be produced.
However, a HIP remains valid while a property is taken off the market temporarily, for example when it is under offer or to allow the seller to change estate agents. Providing that this occurs within 12 months of the date of the property first being marketed, the HIP does not have to be renewed.
Does my property need A HIP?
A HIP is required for every residential property offered with vacant possession (that is any property sold on the understanding that the present occupants will move out prior to completion, with the new owners able to move in immediately).
Exceptions to this generally relate to properties that are let, smallholdings with land, holiday accommodation and mixed-use properties.
What does A HIP contain?
The Home Information Pack Regulations 2006 set out required and authorised contents of the pack. Required documents must be included and authorised documents may be included at the seller’s discretion.
Some advisors recommend that authorised documents are also included, to maximise the chances of achieving a smooth sale and reduce unnecessary delays or uncertainties. We are happy to discuss with you which information you wish to include in your HIP.
The required items are:
- An index listing the contents of the pack
- An Energy Performance Certificate (EPC)
- A sale statement
- Evidence of the vendor's title
- Standard searches (i.e. local authority search, and a drainage and water search)
- Where appropriate, commonhold information (including a copy of the commonhold community statement)
- Where appropriate, leasehold information (including a copy of the lease, information on service charges, and information on insurance)
- Where appropriate, a new homes warranty
- Where appropriate, a report on a home that is not yet physically complete.
The authorised items are:
- A Home Condition Report (HCR)
- A legal summary
- Guarantees and warranties and other searches
For more details of our HIP preparation services, please contact:
- Adrian Fletcher at our Gloucester office on 01452 508800
- Graeme Gaston at our Cirencester office on 01285 654875
- Derek Callanan at our Cirencester office on 01285 654875.
