What is a HIP?
Home Information Packs provide important information to prospective purchasers at the very start of their interest in a property, giving increased transparency on key issues and meaning any offer to purchase is based on an informed decision. The home information pack will bring together at the very start of the process information which at present is collected piecemeal in the days and weeks after an offer has been accepted. The buyer should then be able to make a quicker decision and will not face any unwelcome surprises that could potentially cause a deal to fall through.
This will:
- help the seller decide on a realistic asking price;
- give the buyer the essential information needed to make a well-informed offer and proceed with the purchase;
- greatly reduce the risk of the terms having to be renegotiated due to later disclosure of information, e.g. about any defects;
- shorten the period of uncertainty between offer acceptance and exchange of contracts, thereby reducing the window in which gazumping and other problems can occur.
When should I order a HIP and when does it need to be available?
HIPs are required when selling a residential property in England and Wales . A HIP including the EPC should be available from the time it is first placed on the market. By law the estate agent must be able to supply a HIP pack for your property to interested buyers within 14 days of their request. If your property is marketed without one, the agent can be fined up to £200 per day per offense.
When is a HIP not required?
The home information pack obligation will not apply to non-residential property, mixed commercial (or industrial) and residential property, properties sold with sitting tenants and therefore unavailable for owner occupation or portfolios of properties.
What can I expect to see in a HIP?
The Home Information Pack will contain:
- An Index
- terms of sale
- evidence of title
- replies to standard preliminary enquiries made on behalf of buyers
- copies of any planning, listed building, building regulations consents
- for new properties, copies of warranties and guarantees
- any guarantees for work carried out on the property
- replies to local searches
- a home condition report (voluntary)
- an energy efficiency assessment.
Where any items are missing, the index should explain why. Where searches, leasehold or commonhold documents are missing, the seller needs to provide evidence that an agreement has been made to provide the documents as soon as practicable and within 28 days, except in exceptional circumstances. If this takes longer than 28 days, marketers will be expected to demonstrate that they have made all reasonable efforts and enquiries to obtain them.
Is there a difference between leasehold and freehold properties
Yes, for leasehold properties, until June 2008, only a copy of the current lease needs to be included in the HIP.
It would be useful but it is not compulsory to also provide:
- Most recent service charge accounts and receipts
- Building insurance policy details and payment receipts;
- Regulations made by the landlord or management company;
- Memorandum and articles of the landlord or management company
What does a HIP look like?
This is a sample Home Information Pack. Note that your Pack may look different from the example given. View sample
How long does it take to produce a HIP?
After your order has been accepted we will arrange for one of our HIP providers to contact you directly to make an appointment for a DEA to come to your property to carry out the necessary inspection. Your pack will normally be ready within 7 working days after the visit.
The DEA is a Domestic Energy Assessor. Their role is to assess the efficiency of your property. This means that will establish the likely running costs of your heating, hot water production and electricity usage. This will be displayed in the form of an Energy Performance Certificate and will look similar to the information now displayed on the front of new electrical appliances.
In what format will I receive my HIP and can I access it online?
You will receive one electronic copy in the form of a pdf. A login and password will be emailed to you so that you can access your HIP online. If you require a hard copy of your hip this can be ordered at an additional cost of £15 + VAT.
How long does a HIP last?
While the property is on the market, there is no need to update the Home Information Pack (ultimately, the market decides whether the documents remain acceptable and up to date).
If the sale of your property stops and then starts again, you would normally be required to assemble a new Pack and to update those documents which are now out of date according to the requirements of the Home Information Pack Regulations. However, the seller can carry on using the same Pack without the need to update any of the documents in the following circumstances:
- Where marketing stopped because the seller accepted an offer and wants to restart marketing because the sale has fallen through, provided that remarketing starts within one year of the date when marketing first began or, if later, within 28 days of the sale falling through.
- Where marketing has stopped for any other reason, the seller may remarket the property with the same Pack provided that remarketing starts within one year of the date when marketing first began.
Who are National HIP Sales?
NationalHipSales.co.uk is owned and operated by Property Sale Solutions Ltd, a company which operates property services networks across the UK and Europe.
Who owns my HIP?
You own your Home Information Pack. It is transferable between agents should you so require.
What are my payment options?
- HIP Saver – from £209 + VAT (available when we arrange for 3 agents to give you a valuation on your property).
- HIP Supersaver - £99 + VAT (available when you list your property with one of our network agents and completion takes place within 10 months*).
- Standard HIP – from £334.00 + VAT
- Standard HIP with Deferred Payment ** – from £367.40 + VAT
* You are required to sign a deferred payment agreement which is settled in full by National HIP Sales on completion. If you take the property off the market for more than 28 consecutive days, change to an agent that is not part of the National HIP Sales network, or completion does not take place within the 10 month period the deferred payment fee becomes payable.
** The deferred cost option for the HIP permits you to pay on completion providing this takes place within 10 months. If you take the property off the market before sale, the fee becomes payable
Do I have to order online
Not at all, we are happy to answer any queries that you have or take your order over the phone. We can be contacted on 0800 988 2386.
Can I cancel my HIP?
Once the Home Information Pack is ordered you are unable to cancel it under any circumstance.
Can I choose my own Estate Agent?
If you have a preferred agent that you want to sell your property, please advise us prior to ordering your HIP. It is probable that your preferred agent is a member of our network but if they are not we will speak to them prior to taking your order.
Am I free to negotiate the sales fee with your recommended agent
Sales fees are between you and the agent.
What happens if I decide to take my house off the market or change agents?
You are free to take your property off the market or change agents at any time. However if you have signed a deferred payment ( BUY NOW PAY LATER) agreement the fee will be become payable and will be deducted from your credit card .
Do I still need a solicitor to sell my house?
The conveyancing aspects remain unchanged. You still need a Conveyancer or Solicitor to act on your behalf.
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