Sellers
frequently asked questions
When do I have to provide a HIP?
Properties
marketed for sale from 14 December 2007 in England and Wales will need
a Home Information Pack (HIP), which includes a home energy rating.
The
Pack includes an Energy
Performance Certificate, containing advice on
how to cut carbon emissions and fuel bills. Also included are documents
such as a sale statement, searches and evidence of title.
Currently,
any property that was already on the market on the relevant
commencement date (i.e. 1 August 2007 for sales of homes with four or
more bedrooms; 10 September 2007 for those with three or more bedrooms
and 14 December for all properties) does not need to have a HIP.
At this stage no such date has been set when all
properties that are on the market will be required to have a HIP.
What goes in a HIP?
A HIP includes documents that are required when homes are bought and
sold. Some documents are mandatory and others optional.
The mandatory
documents are:
- An index (ie a list of the contents of the HIP)
- A sale statement (summarising the terms of
sale)
- Evidence of title
- Standard searches (ie local authority enquiries
and a drainage and water search)
- An Energy Performance Certificate (EPC)
- Commonhold information (where appropriate)
- A copy of the lease (where appropriate)
Documents that are optional include:
- A Home Condition Report (HCR)
- Additional leasehold, information
- Guarantees and warranties
- Other searches relevant to the particular area
Who compiles HIPs?
Sellers can hire estate agents, solicitors,
separate pack providers, or do it themselves.
Are HIPs required across the UK?
No - only in England and Wales
I'm selling my house privately - do
I need a Home Information Pack?
If
you are marketing your property, even if it's just by putting a 'for
sale' sign in the window, you need a Pack. Sales where no marketing
takes place (e.g. to a member of the family) won't need a Pack.
Who pays for the Pack?
The
seller is responsible for the cost of a Home Information Pack. The cost
of the Pack is down to the market, but sellers will often be able to
defer costs until late in the sale.
How will I pay for the Pack?
This
depends on the agreement between the seller and the compiler of the
Pack. Some examples of the ways that Packs might be paid for are as
follows:
- Seller pays for the Pack upfront from estate
agent, solicitor or Pack provider
- Seller
compiles the Pack and pays each organisation for the relevant component
(e.g. the Land Registry for the title document)
- Estate agent
offers the Pack to the seller on a 'no sale, no fee' basis, where the
cost of the Pack could be included in the estate agent's commission
- Estate
agent offers the Pack to the seller on a 'buy now, pay on completion'
basis, which is usually a credit agreement for three or six months
between the seller and the organisation compiling the pack.
- These are only indications of payment models;
the Pack regulations do not prescribe any particular payment method.
See What's in a Home Information Pack?
for more information
Do I have to put electrical certificates
in my Pack?
Electrical certificates (past or present) are not
a required component of the Pack, but can be included if the seller has
them.
I've lost guarantees of work I have had
done - what do I do?
Don't worry - guarantees aren't a required
component of the Pack, but can be included if you have them.
Should the pack include a Home
Condition Report?
A
Home Condition Report could help you sell your property more quickly if
it shows that it is in good condition, or if it highlights any problems
straight away for potential buyers, it can avoid nasty surprises for
buyers later in the process.
My house has been on the market before HIPs
came in. If I change Estate Agents now, do I have to get a HIP?
If
your house has not been taken off the market i.e. continuous marketing
has occured, then no, you will not need to commission a HIP.
If
however, there was a break
in marketing you will need to
supply a HIP. |