Since the 14th December 2007 the government has ruled that anyone who puts a home up for sale, irrespective of its size or value, has to have a Home Information Pack (HIP). The purpose of a HIP is to put together in one series of documents a lot of the information needed by potential buyers. In the words of the government, the Pack is designed to “save you money, time and stress”
As a buyer, therefore, you should always ask to see the relevant Home Information Pack, since it’s going to contain a lot of information directly related to your interest in buying the property. So, what exactly does an HIP contain?
The government’s rules are really quite explicit and the HIP should include all of the following compulsory documents:
An HIP Index – this will list, in one covering document, all of the other required documents in the Pack;
Energy Performance Certificate – this is designed to show how energy efficient is a particular home. This energy efficiency is ranked on a scale from A to G, with the most energy-efficient falling into category A. Don’t be alarmed, however, since it’s accepted that the majority of properties in the UK are currently going to fall into categories D or E. The Energy Performance Certificate should also include recommendations about improving the home's energy efficiency, in order to cut CO2 emissions generally and your own fuel bills in particular.
Sale Statement – This will provide some very basic information about the property, namely: its address; whether it’s freehold, leasehold or commonhold; whether it’s registered or unregistered (at the Land Registry); and whether or not the home is offered for sale with vacant possession.
Standard Searches – The HIP must include an official certificate confirming that a search has been made of the local land charges register with respect to the property being offered for sale. The Pack should also contain other decisions by the local authority of interest to any buyer – for example, planning decisions or road building proposals. Finally, the standard searches should make clear the status of water and drainage services to the property.
Evidence of Title – These are the documents showing that the seller does indeed own the property and, so, has the right to sell it. If the property is registered, the seller’s proof of title needs to include those documents obtainable from the Land Registry, providing an up-to-date registration of ownership. This will take the form of copies of the relevant individual register (which will include extracts of the property register, ownership register and, usually, a charges register), together with an official copy of the title plan.
Although the above are all the documents compulsorily included in any HIP at the moment, there are a number of others which the government describes as “optional” – but which are, by implication, seen as highly desirable. These include: a Home Condition Report (on the structural condition of the building); a Legal Summary (to interpret any legal complexities relating to the sale or purchase of the property); home use or home contents forms; and the results of any other searches which could prove useful to the buyer, but which are not otherwise included in the compulsory Standard Searches.
While getting a HIP together does sound like a lot of kafuffle, remember that everyone in the UK who is looking to sell their home will be going though the same process as you and, on the plus side any property you decide to buy will come with a HIP also, so you will have all the information you need to have about your potential new home to hand.
To make things easy….
- If you know you will be looking to sell your home in the near future, start getting the necessary information together now. Doing this little and often is a lot less stressful than doing it all in one go
- Speak to any close neighbours who are in the process of selling. They will be able to point you in the right direction when it comes to getting some of the necessary documentation
- And finally, It may sound quite stressful compiling all the necessary information needed for a HIP, but a lot of Estate Agents and Solicitors now offer this service (for a fee of course!) if you would rather someone else do it for you.
- For more information, visit: http://www.homeinformationpacks.gov.uk//
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