Home: HIP

HIP

As of 14 December 2007 every home put on the market needs a Home Information Pack. 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. The legislation is confusing and we have complied some basic questions and answers to help with understanding the new law.

If you instruct Pattison Lane in the sale of your home then the cost of the HIP is FREE providing you use our conveyancing in your sale or purchase and you appoint us as your sole selling agents. It is absolutely fine to use your own conveyancers in which case we will make a charge of £299 plus VAT and add it to our commission when we sell your home. If you decide to stay put after marketing your home then we will issue a withdrawal fee and the HIP will be yours to keep when you next remarket your home.

Pattison Lane have positioned themselves to ensure that their clients pay nothing up front for the sale of their home and that this new legislation does not hinder the buying and selling process for them.

Sellers' frequently asked questions

When do I have to provide a HIP?
If you are marketing a property which falls within the scope of the scheme (those with 3 or more bedrooms) during the temporary period, which runs from 1 August 2007 until the 31 December 2007, then the HIP must be commissioned before marketing can begin. During this period the EPC must be provided before contracts are exchanged, although there is no set time limit on when the rest of the HIP should be provided.
 
If you are marketing a property which falls within the scope of the scheme from 1 January 2008 onwards, the HIP including the EPC must be available to anyone interested in the property from the time it is first placed on the market.

The person responsible for marketing a property (in most cases, the estate agent) must have commissioned a Home Information Pack by the time that the property is on the market. As soon as you have received the Energy Performance Certificate (a compulsory part of the Pack), you must produce a Pack and provide potential buyers with a copy of the Pack, or any document from it on request. In most cases, this period is 14 days after the date of the request.

The ability to market without a Pack is a temporary arrangement and will only last until 31 December 2007.
If you sell the home before you receive the Home Information Pack, there is no longer any need to provide a Pack. However, you will still have a legal duty to provide the Energy Performance Certificate, which must be given to the buyer at exchange of contracts, or as soon as it is available.

How is a 3/4 bedroom property defined?
A 3 or 4 bedroom property is defined as any property being marketed as having 3 or 4 bedrooms.
 
When will my 2/1 bedroom property require a HIP?
More energy assessors are needed before the whole of the market can be included. It is likely though that by the end of the year, all property will fall within the scheme. 
 
What do I do if my house was on the market before the 1 August?
Properties that are genuinely on the market before the commencement date (i.e. 1 August 2007 for sales of homes with four or more bedrooms and 10 September 2007 for those with 3 bedrooms) will not need a Pack. This exemption will apply for as long as marketing continues but the Government may appoint a date at which all properties on the market will be subject to the HIP duties, regardless of when they were first marketed.

How long does a Pack last for?
While the property is on the market, there is no need to update the Home Information Pack (ultimately, the market decides whether the documents remain acceptable and up to date).

If the sale of your property stops and then starts again, you would normally be required to assemble a new Pack and to update those documents which are now out of date according to the requirements of the Home Information Pack Regulations. However, the seller can carry on using the same Pack without the need to update any of the documents in the following circumstances:

• Where marketing stopped because the seller accepted an offer and wants to restart marketing because the sale has fallen through, provided that remarketing starts within one year of the date when marketing first began or, if later, within 28 days of the sale falling through.
• Where marketing has stopped for any other reason, the seller may remarket the property with the same Pack provided that remarketing starts within one year of the date when marketing first began.

• Home Information Pack Index
• Energy Performance Certificate
• Sale statement
• Standard searches
• Evidence of title
• Additional information for leasehold and commonhold sales, where appropriate.

You can also include other documents such as a Home Condition Report, an environmental or flood risk search and other information that would be of interest to a potential buyer as defined in the regulations.

Who compiles HIPs?
Sellers can hire estate agents, solicitors or separate pack providers.

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. The key word is marketing.

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.

Pattison Lane will provide the HIP free of charge if you use their conveyancing for your sale. If you wish to use your own conveyancers then a charge of £299 plus VAT will be added to your invoice when your property is sold to cover the cost of the HIP. If you withdraw your property from the market then a withdrawal fee will be charges to cover the cost of the HIP. Our proposition is that there will be no up front costs to our clients.

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.

Buyers' frequently asked questions

When should I expect to receive a Home Information Pack/Energy Performance Certificate for a property I am interested in buying/am in the process of buying?
If a property which falls within the scope of the scheme (those with 3 or more bedrooms) is first placed on the market during the temporary period, which now runs from 1 August 2007 until the 31 December 2007, then the HIP must be commissioned before marketing can begin. During this period the EPC must be provided before exchange, although there is no set time limit on when the rest of the HIP should be provided.
 
If a property which falls within the scope of the scheme is first marketed from 1 January 2008 onwards, a HIP including the EPC should be available from the time it is first placed on the market.
 
What can I do if a HIP/ EPC isn't provided?
Potential buyers have a right to a copy of the Pack and this should be provided within 14 days of request. Sellers are entitled to make a reasonable charge to cover copying and postage costs and may also refuse to provide a copy in certain limited cases.  These are where the seller believes that the person making the request

• could not afford the property;
• is not really interested in buying the property
• is not a person to whom the seller would wish to sell the property (but this does not allow them to unlawfully discriminate against someone).

If you believe that you are being denied a copy of the pack unlawfully, local authority trading standards officers are responsible for enforcement of these duties.

How much does a Home Information Pack cost?
Copies of Packs are free to buyers, although a reasonable charge may be made for copying and postage.

What can I expect to see in my Pack?
The following documents are compulsory and must be included in a Pack :

• Home Information Pack Index
• Energy Performance Certificate
• Sale statement
• Standard searches
• Evidence of title

Additional information for leasehold and commonhold sales, where appropriate.

You can also include other documents such as a Home Condition Report, an environmental or flood risk search and other information that would be of interest to a potential buyer as defined in the regulations.

Who compiles HIPs?
Sellers can hire estate agents, solicitors or separate pack providers

Are HIPs required across the UK?
No - only in England and Wales.

Who pays for the Pack?
The seller is responsible for the cost of a Home Information Pack.