The Home Information Pack
(HIP) regulations affect
most residential property on
the market in England &
Wales (see exceptions to the
HIP Regulations below). From
6th April 2009 a HIP must be
available on the first day
that a property is marketed
for sale. The HIP comprises
a pack of documents that is
intended to provide the
buyer of a property with
information regarding the
property.
Information for Sellers
If you are placing your
property on the market on or
after 6th April the law
requires you to have a HIP
available on the first day
that your property is
marketed for sale. This
means that you must order
your HIP in advance of
marketing your property.
From 6.4.09 Sellers must
complete a Property
Information Questionnaire (PIQ)
which must be included in
the HIP. Once the HIP is
compiled sellers are
entitled to receive a free
copy or link to the HIP and
should check it to ensure
accuracy.
You can order a fully
compliant HIP from CMS for
just £225.00 plus VAT for a
freehold property and
£250.00 plus VAT for a
leasehold property. Simply
call us on 0845 060 33 55 to
order your HIP immediately.
What the HIP must contain:-
1. An index which lists the
documents contained in the
HIP and provides a checklist
for the seller, buyer,
estate agents, solicitors
and enforcement agencies.
The index must state if one
of the 'required' documents
is not included, and what
steps are being taken to
obtain it. The index must be
updated whenever documents
are added or removed.
2. The Property Information
Questionnaire (PIQ). From
6th April 2009 this
questionnaire, which is
completed by the Seller,
must be included in the HIP.
It contains information
about the property that may
be helpful to a potential
buyer such as gas and
electricity safety, flood
risk information, any
previous structural damage,
parking arrangements and if
the property is leasehold it
will also include a
leasehold summary.
3. An Energy Performance
Certificate (EPC) or a
Predicted Energy Assessment
(PEA) which gives the
potential buyer information
on the energy and carbon
emission efficiency of a
property on an A-G grade
rating. The EPC also
provides advice on the most
cost effective ways to
improve the energy
efficiency of the property.
Where the property is a new
build which is being sold
off-plan the developer must
provide the PEA initially
and this should then be
upgraded to an EPC when the
home is built.
4. A Certificate or interim
Certificate for new build
properties only which shows
the sustainability of the
home, where it complies with
the standards under the Code
for Sustainable Homes, or a
nil-rated certifcate where
the property has not been
assessed against the code.
This will be provided by the
property developer.
5. A Sale Statement which
must include the name of the
seller, property address,
whether the property is
freehold, leasehold or
commonhold, registered or
unregistered, whether the
property is being sold with
vacant possession, and in
what capacity the seller is
selling (i.e. as owner or on
behalf of a deceased owner).
6. Evidence of title with
registered land this would
be a set of Official Copy
Entries from the Land
Registry and an Official
Copy of the Title plan. If
the property is unregistered
the HIP must include an
Official Certificate of
Search of the Index Map and
an Epitome of Title listing
the documents that provide
evidence of the seller's
title to the property
together with copies of
those documents.
7. Standard conveyancing
searches. The HIP must
include a standard local
authority search and a water
authority search.
8. Leasehold/Commonhold
properties. The HIP must
include a copy of the lease
or information about the
commonhold.
FROM 6TH APRIL THE HIP MUST
BE AVAILABLE FROM THE FIRST
DAY OF MARKETING AND MUST
CONTAIN AS A MINIMUM ITEMS
1, 2, 3, 4, 5, AND 6 AS
ABOVE. IF ITEMS 7 AND 8 ARE
NOT IMMEDIATELY AVAILABLE
THEY MUST BE PROVIDED WITHIN
28 DAYS OF THE FIRST DAY THE
PROPERTY WAS MARKETED. THE
INDEX MUST NOTE ANY ITEMS
THAT ARE NOT INCLUDED,
CONFIRMATION THAT THEY HAVE
BEEN ORDERED AND WHEN THEY
ARE EXPECTED TO BE INCLUDED.
WHEN THE MISSING DOCUMENTS
BECOME AVAILABLE THE HIP
INDEX MUST BE UPDATED.
Optional Documents
The HIP must not contain any
advertising or marketing
material but may contain:
A Home Condition Report (HCR)
which is a type of survey of
the property commissioned
and paid for by the seller.
A legal summary
Home use/Contents Form
Other documents such as
specialist searches i.e.
mining, environmental,
chancel check
Planning documents relating
to the property
Guarantees relating to the
property
Additional leasehold
documents such as ground
rent and service charge
information
Other documents that relate
to the property which may of
interest to a potential
buyer
Exemptions from the HIP
Regulations
· Private
sales where the property has
never been marketed i.e.
sales between friends,
family members, neighbours.
· Commercial
properties that have
planning permission as a
business and that will
remain as a business upon
legal completion.
· Residential
property that is being
converted to business use
and will have business
planning use upon legal
completion.
· Mixed
commercial/residential sales
- i.e. a shop with a flat
above
· Dual
use - i.e. a Doctor's
surgery with living
accommodation
· Portfolios
of Properties - i.e. a
number of properties that
are being sold together as a
portfolio
· Unsafe/Demolition
properties - i.e. properties
that have been deemed by the
planning authorities as
unsafe for habitation or
where a demolition order has
been made and where they
will remain in that
condition upon legal
completion.
· Property
with leases of less than 21
years
· Properties
limited by law as use for
holiday accommodation or
occupation for less than 11
months of the year
· Right
to buy and similar sales
· Properties
that are being sold subject
to an existing sitting
tenancy where the tenant
will remain in the property
after completion
· Four
bedroom properties that have
been on the market
continuously since 1st
August 2007
· Three
bedroom properties that have
been on the market
continuously since 9th
September 2007
· Properties
with two bedrooms or less
that have been on the market
continuously since 14th
December 2007