Home Information Packs  

Overview of Home Information Packs - 6th April 2009 update

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

For frequently asked questions about HIPS - click here