All about HIP’s
The introduction of Home Information Packs or HIPS (formerly home sellers packs) in the UK has been brought about to make the property buying process more transparent, quicker, more efficient and smoother.
The one group of people who could benefit the most from the home information pack is first time home buyers who need to reduce the costs and uncertainty as much as possible.
The Home Information Pack (HIP) contains important information that buyers and sellers need to know. Anybody marketing a three or four bedroom property is now legally required to prepare a Home Information Pack and make it available to potential buyers of the property. For sellers, providing a HIP upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home.
For buyers, the pack provides essential information about properties they are considering buying, free of charge to the buyer. The seller will have to pay for the pack and in most cases, these packs can be arranged by estate agents. Buyers can now check that Energy Performance Certificates (EPCs) and Home Condition Reports (HRCs) are genuine and authentic by accessing the central register. Reports can be retrieved from the central registers.
So, what does a Home Information Pack contain?
Compulsory Items
The following are compulsory documents in the HIP - otherwise known as ‘required’ documents, as opposed to the optional ‘authorised’ documents.
1. Energy Performance Certificate:
Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions. It also includes recommendations on ways to improve the home’s energy efficiency to save you money and help the environment.
2. Sale statement:
The sale statement should provide some basic information about the site, including: The name of the seller and the address of the property being sold Whether the property is freehold, leasehold or common hold Whether the property is registered or unregistered Whether or not the property is being sold with vacant possession.
3. Searches:
The local land charges register relating to the property being sold. If the search is carried out by the local authority, an official search certificate will be provided. Alternatively a personal search company can be used.
Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack regulations. A local authority or a personal search company can be used.
The provision of drainage and water services to the property. The procedural guidance to the Home Information Pack (HIP) Regulations contains more information about what should be included in the search reports.
4. Evidence of title:
These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the Land Registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of: Official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register) An official copy of the title plan In the case of the sale of a common hold interest, official copies of the register and title plan should be produced for both the unit and common parts.
For sales of unregistered land, the pack must include copies of a certificate of an official search of the index map (obtained from the Land Registry), and those documents that the seller intends to rely on to provide evidence of title to the property, and thus the right to sell it.
5. Leasehold
and common hold documents: Most of the documents that must be included in the Home Information Pack are applicable to all transactions, but some are needed only for leasehold and common hold sales.
The required leasehold documents are:
A copy of the lease
Any regulations or rules that apply to the property that aren’t mentioned in the lease and any proposed amendments to same
Statements or summaries of service charges covering the previous 36 months Where appropriate, the most recent requests for payment of service charges, ground rent, insurance against damage for the building in which the property is situated, and insurance in respect of personal injury caused by or within the building during the 12-month period before marketing began
The name and address of the current or proposed lessor, and details of any managing agent that has been appointed or proposed by the lessor to manage the property
A summary of any works being undertaken or proposed that will affect the property or the building in which it’s situated.
The required common hold documents are: An official copy of the individual register and title plan for the common parts.
An official copy of the common hold community statement.
Where they are reasonably obtainable, or sellers can reasonably be expected to be aware of them, the following documents and information are also required:
Copies of any regulations or rules not described in the common hold community statement and any amendments proposed to those regulations or to the common hold community statement
Copies of any requests for payments made in the previous 12 months in respect of common hold assessment, reserve fund levy and insurance (if not covered by a request for commonhold assessment)c
The name and address of any managing agent or other person appointed or proposed to be appointed by the common hold association to manage the common hold
A summary of current or proposed works affecting the common hold
6. Home Information Pack Index:
The compulsory documents include a Home Information Pack Index listing the documents contained in the pack.
For more information please contact Select Properties on 0151 525 0033.
