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Residential Property Services
HOME INFORMATION PACKS
Frequently asked questions
1 What is a HIP?
A pack containing certain information on your property. It must
be available to a buyer, before you can put your property on the
market for sale.
Please click here to see a sample
HIP
2 When does the new law start?
1 August 2007 for properties with four or more bedrooms. 10
September 2007 for properties with three bedrooms. 14 December
2007 for all other properties. It only applies to England and
Wales.
3 What happens if I had my property on the
market before HIP law started, and I still havent sold it?
Currently, if your property was already on the market on the
relevant HIP law start date (that is 1 August 2007 for sales of
homes with four or more bedrooms; 10 September 2007 for those
with three or more bedrooms and 14 December for all other properties),
and you haven't sold it by then you will not need to have a HIP.
But, starting on 1 October 2008, you must give an EPC to
a prospective buyer as soon as possible even if you do not have
to supply them with a full HIP.
4 Why do I need a HIP?
Government research has found that a huge amount of money is
wasted each year by home buyers who make offers to buy a property,
pay for a survey, searches, and then discover problems which mean
that they no longer wish to buy the property.
5 What will be in a HIP?
A HIP must include:
A summary of the contents
of the pack
An energy performance certificate
(EPC)
It can be best described as similar to 'green ratings' that
are applied to such items as fridges. It will tell a potential
buyer about the energy efficiency of your property and offer advice
on practical steps that you can take to cut carbon emissions.
A qualified energy assessor will have to prepare the EPC. He
or she will visit your property and assess its environmental impact.
Your property will be given a rating from A to G for both energy
efficiency and environmental impact, with 'A' being efficient
and 'G' inefficient. The report will also offer a rating if you
carried out all the recommendations made by the energy assessor
to improve your home.
The EPC must be the first document in the pack, following the
index;
Sample energy performance certificate
A sale statement summarising the
terms of the sale
Including the address, postcode, whether the property is freehold
or leasehold and whether title to the property is registered at
the Land Registry or not.
A copy of your title deeds
Property searches (that is local authority enquiries and
a drainage and water search)
If the property is leasehold, only a copy of the lease;
however on a future unknown date the landlord will also have to
provide other information.
If you choose, you can also include guarantees, warranties and
a legal summary.
6 Do I need to include a survey in a HIP?
No.
The Government's original wish was to include a home condition
report ('HCR) in the HIP, but this has been abandoned for now.
We expect that a HCR will become a compulsory HIP document within
a few years.
A HCR is similar to a survey and provides information on the
condition of the property. It will rate the condition of different
parts of the property on a scale of 1 to 3 - with 1 being the
best - and would need to be undertaken by a qualified 'home inspector'.
A HCR will not claim to be, and you should not regard it as being,
as comprehensive as a full survey.
7 Do I need a HIP to sell my property?
Most houses and flats, which are marketed for sale to the public,
will need a HIP. Where you are selling your property privately,
to a friend or relative, you will not need a HIP. A HIP will not
be necessary in a limited number of other cases - for example,
if you sell a property with a tenant living in it, or it is a
commercial property.
8 Who pays for the HIP?
The seller is responsible for the cost of a HIP.
9 What will a HIP cost?
The cost of each individual HIP will vary - the final price
depending on the documents included in the pack, the cost of local
searches and the EPC, where the property is, and who prepares
it.
When you send a HIP to a potential buyer, you cannot charge for
the HIP itself, but you may make a reasonable charge for copying
and posting it.
10 Who owns the HIP?
If dgb prepares a HIP for you, and you pay for it, the HIP will
belong to you. You will be free to take it with you if you no
longer wish to instruct us, or if you change estate agents. We
do not know whether other HIP providers will have similar arrangements.s.
11 Can I see the HIP?
Yes, you will be able to review the HIP. dgb believe it is essential
that you do so, to check the information contained in it is correct.
12 Who else can see the HIP?
A potential buyer can ask to see a copy of
the HIP. You will have to provide them with a copy; however,
you will not have to supply one, if you or your agent, have
reason to believe that a buyer:
Is unlikely to have enough money to buy your property; or
Is not genuinely interested in buying
a property; or
Is not a person to whom you want to
sell your property.
You will break the law if you refuse to supply a HIP without
explanation. You cannot however, refuse to supply a HIP to someone
because of their race, sex, age, or sexual orientation.
You can make a reasonable charge to a potential buyer who wants
to see a copy of the HIP. The cost can cover copying of the
HIP and postage costs. You cannot charge for sending an electronic
copy of the HIP to a potential buyer.
If a potential buyer asks for a copy of the HIP you must give
them a copy within 14 days of their request, or, if later, the
day when you receive their payment for it.
13 What formats will a
HIP be produced in?
You will be able to choose the number of copies
of the particular HIP you need, and in which formats, to suit
your marketing needs (for example hard copies, on CD, and on-line).
You must buy at least one paper copy of
the HIP to comply with the law.
14 How long will it take
to produce a HIP?
On average, dgb believe most HIPs will be
prepared within five working days of you requesting one, provided
you supply all the information and pay the fees needed.
15 What if I try to sell
my property without a HIP?
You will break the law, and may:
Receive a £200 penalty notice;
A fine not exceeding £5000;
Have to pay a potential buyer the reasonable
cost of preparing a HIP
16 How long does a HIP last?
Until you sell the property. If you take your property off
the market for any reason but you remarket it within a year
of the date when you first starting marketing, you can use the
same HIP. If you take your property off the market because you
accept an offer, and that transaction falls through, you can
remarket your home with the original HIP (even after one year)
as long as remarketing starts within 28 days of the sale falling
through.
17 How long are documents in a HIP valid
for?
An EPC will be valid for 3 years. All other documents in the
HIP will remain valid all the time you continue marketing the
property for sale.
18 What if I can't get some of the information
for some reason? Does it mean I can't sell my property?
No. Until 31 December 2008, you can market your property as
soon as you have requested a HIP. You will not have to delay
marketing while the HIP is being prepared.
19 Who is responsible if the HIP is defective?
You, and your agent, are responsible for making sure you market
the property with a valid HIP. The law sets out the required
content or minimum terms for some of the documents which must
be contained in the HIP. If any HIP document is misleading or
inaccurate, you, and your agent, must include the correct documents
ASAP.
The law recognises that you, and your agent, should not be
held responsible for the accuracy of the information contained
in documents provided by others. So long as you, or your agent,
have reasonable cause to believe the documents do comply with
the law, you will not be breaking the law.
20 What if I am selling a newly built property?
The same rules apply. So if you are selling a newly built
property, you will need a HIP.
Also a HIP for a new build home must have a certificate
(or interim certificate) showing the rating the home has received
for the Code for Sustainable Homes. Or a nil-rated certificate
showing the home has only been designed to meet current building
rules.
New homes marketed 'off-plan' will need to contain a predicted
energy assessment (PEA) instead of an EPC in their HIP. EPCs
require a physical inspection.
Where you market a new home 'off-plan' there are likely to
be some differences between HIPs for these sales and those provided
for properties that are already built. For example, the searches
for the property and title information may cover a wider area
if the property does not have a postal address or an individual
title number.
Buildings that are converted are not excluded from HIP law.
21 Will there be any further changes to
HIPs law?
We expect so. The government is consulting on whether more
information should be included in a HIP - for example, a seller's
questionnaire.
22 How do I get a HIP?
Contact dgb once you have decided to sell your property and
before you have started marketing it. dgb will be able
to advise you on:
Decision making and timetable;
Gathering the information that has to be and can be included
in the HIP;
Obtaining pre-marketing advice and valuation;
Obtaining a pre-HCR inspection and considering whether this
document should or should not be included in the HIP;
Obtaining the EPC;
Considering the terms of contract with
an estate agent;
Who to instruct to prepare a HIP and
the cost;
Who owns the HIP;
Set terms for profiling buyers and distribution
of HIPs;
When you can market the property;
The methods of how to pay the HIP (including
credit arrangements subject to status);
The legal steps in selling the property
once you have secured a buyer.
23 Can dgb provide me with a HIP?
Yes. HIPs contain much legal information. dgb are best placed
to prepare, interpret and advise you on these packs. dgb intend
to offer the Law Society Home Information Pack. dgb are confident
the Law Society HIP is the right solution for your next sale.
It is:
Guaranteed to comply with HIP law;
Prepared online so you can market your
property as quickly as possible;
Flexible, allowing you to include additional
items about the property, if you chose;
Produced with Law Society branding,
offering a buyer reassurance about its quality;
Designed to link seamlessly into selling
a property and our IT system;
Competitively priced.
24 Where can I get more information on
HIPs?
Please call one of dgb's residential property team or you might
like to look at www.homeinformationpacks.gov.uk
Mark Smith
DD: 01634 304000
E-mail: mark.smith@dgblaw.co.uk
This represents dgb's understanding of the law on 20 September
2008. It is a general guide for information only. You should
obtain legal advice on your specific circumstances.
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