Consumers

HIPs provide key information needed by buyers and sellers at the very start of the home-buying process, making transactions more efficient and less likely to fall through between offer and exchange. HIP documents give consumers a clear, up front picture of what they are buying and selling.


Benefits
The benefit to the seller is that any potential buyers can make informed choices and should reduce discoveries down the line which could cause the sale to be delayed – or the buyer to pull out altogether. For the buyer, they benefit by having essential information about properties they may want to buy, free of charge.


Compulsory items in a HIP
The following documents must be included in a Home Information Pack:

- Index - this lists the documents in the pack & also a checklist for all parties involved in the sale
- Energy Performance Certificate (EPC)
- Sale statement – basic information about the property
- Standard searches – these include local land registry charges, other records held by the local authority and provision of drainage & water services to the property
- Evidence of title – to prove that the seller owns the property
- Additional information for leasehold and commonhold sales, where appropriate
- A HIP for a newly built home must have a certificate (or interim certificate) showing the rating that the home has received.

However, up until 1 January 2009 it is possible to market a property without all of the compulsory documents.


Optional items in a HIP
Some documents in the Home Information Pack are optional but useful all the same. These include:

- Home Condition Report (HCR)
- Legal summary
- Home use/contents forms
- Other documents
- Additional information for leasehold and commonhold sales, where appropriate.


Buyers and Sellers Requirements

Buyers:
All you need to do is ask whoever is advertising the property for a copy of the HIP. If it is through an estate agent, they must provide this free of charge – although they may make a charge for copying and posting.

Sellers:
If you are selling your home, you can use a variety of methods when organising your HIP. This can be through an estate agent, a solicitor, specialist pack provider, using other businesses who offer the service or indeed you can compile one yourself.

You do not need a pack if:
- You don’t advertise it (selling to family or friend etc)
- You are selling holiday or seasonal accommodation
- You have non residential property – or indeed if you have a mixed property like a shop with a flat
- You are selling a property that is unsafe, or one that is going to be demolished

We would encourage you to use a company that subscribes to the HIP code. All AHIPP members that provide HIPs must subscribe to the code. It is independently monitored by the Property Codes Compliance Board (PCCB). The PCCB has a list of all subscribers on their website www.propertycodes.org.uk. The codes have a standard practice which companies must adhere to and which would give you free independent redress in the unlikely event of any issues arising.

FAQ’s

Q - Who compiles HIPs?
A – You can either go through an estate agent, specialist HIP provider, solicitor or you can compile one yourself.

Q - Do I need a pack if I decide to sell privately?
A – If you advertise your home – even by putting a ‘for sale’ sign in the garden, you need to provide a pack.

Q – Who pays for a pack?
A – The seller pays for it but often they can defer costs until later in the transaction.

Q – How do I pay for a pack?
A – There are various ways. You can pay for it upfront, if you compile the pack yourself you can pay individual companies for the documents in the pack, some estate agents offer various payment facilities like ‘buy now, pay later’ or a ‘no sale no fee’.

Q – Do I need a new pack if I change estate agents?
A – No. If you have already paid upfront then you can ask for the pack to take to your new estate agent. If you have had a payment arrangement with them, then you could buy the pack from them to take with you. The pack is for your property not for individual estate agents – even if they initially commission the pack for you.

Q – How long are the packs valid for?
A – There is no end date to a pack. However, the Energy Performance Certificate is valid for 12 months and searches may need refreshing after 6 months – but this isn’t always the case. It really depends on the Solicitor or Mortgage Lender involved.

Q – Where can I go if anything goes wrong?
A – Depending on whom your complaint is with, there are redress schemes in place:
- All estate agents are required to belong to an approved redress scheme for HIP related complaints. The approved schemes are currently Ombudsman for Estate Agents and also The Royal Institution of Chartered Surveyors.
- Complaints relating to domestic energy assessors or home inspectors are dealt with through their individual accreditation scheme.
- Subscribers to PCCB will have formal complaint procedures in place but if you do not accept their decision or if you hear no final response within 8 weeks, then you can take your complaint to the Independent Property Codes Adjudication Scheme.