HOME INFORMATION PACKS
Home Information Packs (HIP) aim to reduce the stress of buying and selling by providing key documents at the time a property is put on the market. Under the old system, such information was not usually made available until an offer had been negotiated. This often led to sales being renegotiated or even collapsing altogether.
The HIP includes various authorised documents. Some such as the Energy Performance Certificate are compulsory and others like the Home Condition Report are optional.
The compulsory documents are:
- An index (a list of the contents of the Pack)
- An Energy Performance Certificate
- A sale statement (summarising the terms of sale)
- Evidence of title
- Standard searches (e.g. local authority enquiries and a water company search)
- Where appropriate, common or leasehold information
Optional documents include:
- A Home Condition Report
- A legal summary
- Guarantees and warranties
- Other searches relevant to the particular area (e.g. Environmental report)
- A Home Use Form
- A Home Contents Form and additional relevant information
Unless a property is exempt from the requirement, it is illegal to market a property for sale without a Home Information Pack. Trading Standards are responsible for enforcement and they can level a fine of up to £200 per day for non-compliance.
In addition, estate agents are now required for the first time to belong to an approved consumer redress scheme, which should mean greater peace of mind and a better standard of service for buyers and sellers.
HIPs are normally compiled by estate agents, solicitors and specialist HIP providers. However, sellers have the option to compile a HIP themselves. While Sussex Inspections generally believe compiling the HIP is best left to a specialist provider, we can assist individuals in compiling their own, with our HIP2U service. In addition we also offer our unique HIP24 service which can provide a HIP within 24 hours, for those that need to market their home as quickly as possible. We believe this is the fastest service in the country!
The cost of a Home Information Pack will vary depending on which documents are included. A HIP containing just the mandatory documents should cost from £350 for a freehold and £450 for a leasehold property. However, while this will get the property on the market, it won't include all the information likely to be required from a buyer's solicitor. Therefore, there are differing levels of HIPs depending on which optional documents, such as a Home Condition Report are included. A full HIP with all the required and optional documents will cost more, but should provide a solicitor with enough information to agree an exchange of contracts!