Home Information Packs (HIPs)

Since December 14, 2007, all residential homes sold with vacant possession must be accompanied by a Home Information Pack (HIP).

Agricultural, business and commercial properties and those sold without vacant possession are not required to have one.

The legislation places responsibility on the seller to provide complete information on the property. The selling agent has to supply the buyer with a pack containing the following as a minimum:

· Home Information Pack index

· Energy Performance Certificate

· Sale statement

· Standard searches (of local authority, Land Charges Registry, and water and drainage)

· Evidence of title

· Additional information for leasehold and commonhold sales

The most significant of these is the Energy Performance Certificate, which is prepared specifically for each HIP. Everything else is not too different from the old system.

There are also 14 new forms available to assist the buyer in obtaining additional information on, for example, such details as fixtures and fittings or services. None of this negates the need for the buyer’s solicitors to raise further enquiries if necessary.

Practical points

Buyers will still wish to commission a structural survey, since the Home Condition Report, originally proposed by the Government as part of the HIP, was withdrawn.

HIPs are expected to remain valid for six months but, since local authority searches are normally held to be current for three months, a mortgage lender may require the seller to undertake further searches to ensure the security of its investment.

Cost

The cost of the HIP, payable in advance, varies according to the size and type of property. Unregistered leasehold or commonhold titles are slightly more expensive.

A typical cost is approximately £300 to £400.

Once it is produced, the HIP is the property of the seller. You may provide it to whichever estate agents you choose. We can provide copies in both electronic and paper formats.

Further information

If you would like to know more about HIPs, or wish to speak directly to a solicitor, please either email us or call your nearest office.