HIPs FAQs & Answers

Introduction

A Home Information Pack or “HIP” is a Government backed scheme which has been designed to oblige sellers to prepare a pack of information about their property. The HIP has also been introduced to promote greater access to information for a prospective purchaser. The purchaser should then able to make a more informed choice about buying.

Not everyone will need to obtain a HIP as there are some exceptions, these are:-

1. Non residential, for example Commercial or mixed use dwellings/properties

2. Sales to private individuals where the property has not been advertised for sale in any way on the open market.

3. Properties that have been placed on the open Market for sale prior to 1st August 2007 and are still being actively marketed for sale.

4. Purchaser’s of a property

FAQs & Answers

Questions

1. What is a HIP?

2. Why do I need one?

3. When should I get one?

4. Who should I ask to prepare my HIP?

5. How can Bowling & Co assist in the production of my HIP?

Answers

1. A HIP is a pack of information about a property and will usually contain the following items:-

i) An Energy Efficiency Report

ii) Evidence of Title and deeds of the property (obtained from the Land Registry)

iii) Local Authority searches, Water and Drainage Searches and an Environmental search.

iv)Standard pre-printed forms such as a “Seller’s property Information Form” and “Fixtures Fittings and Contents” form. (N.B Please note that you will also be expected to fill out a “Seller’s Leasehold Information” form if you are selling a leasehold property)

v)Guarantees and Warranties for building work, replacement windows or doors, planning permissions or building regulation approvals, receipts or invoices, for example a new boiler.

vi)If your property is leasehold you will also be expected to produce copies of up to date Ground Rent receipts as well as service charge statements and a copy of your up to date buildings insurance schedule.

2. As from the 1st August 2007, unless you are selling privately without having advertised your property on the open market for sale or are selling to members of your family, you will no longer be able to advertise your property for sale on the open market unless you are able to produce a HIP within 2 weeks of marketing your property.

N.B If you have already placed your property on the market before the 1st August 2007 you do not need to obtain a HIP provided you are able to complete the sale of your property before the 31st December 2007. The penalty for failing to comply with the new legislation will result in a financial penalty and will be enforced by the government.

3. You must ensure that you obtain your HIP PRIOR TO MARKETING YOUR PROPERTY ON THE OPEN MARKET AND PRIOR TO THE 2 WEEK DEADLINE IMPOSED BY LAW

4. It is the seller’s responsibility to ensure that a HIP is provided and should consider appointing one of the following to assist in the production of the HIP :-

a. Bowling & Co

b. Your Estate agent

c. An independent pack provider

Any of the above should be able to assist you in making sure your pack is ready within the 2 week deadline

5. The cost of obtaining a HIP will vary from supplier to supplier. At Bowling & Co we aim to keep the cost of producing a HIP down to a minimum. We can do this in 3 ways:-

1. We are proud to confirm that we do not pay referral fees to estate agents to receive conveyancing matters and have established our reputation on the recommendations of existing satisfied clients. Therefore passing on the saving to you.

2. We have appointed a pack provider with whom we currently instruct to carry out our searches on domestic conveyancing transactions and with whom we have established an efficient and reliable working relationship with over the years.

3. We can provide a friendly and efficient service to suit your requirements and guide you through the process of buying and selling your property

Please do not hesitate to contact our residential Conveyancing Department with any queries or concerns you may have about the introduction of HIPS.

Related Links:

> H.I.Ps FAQs and Answers

> H.I.Ps Flow Chart

> H.I.Ps Newsletter