Recommended links:
The Home Information Packs (HIP) comes into law on June 1st 2007.
All properties that are put on the market must have a HIP.
There are various compulsory documents in a HIP plus other optional ones that are recommended. There have been numerous late changes to the legislation behind HIPs and much confusion surrounding them. The aim behind them is to try and streamline and speed up the sale process although the actual requirement of a HIP may in fact increase the sale time and cost.
The Government has decided that all homes that are publicly marketed for sale must have a HIP. These packs contain certain information relevant to the property being sold, including:
- A Sale Statement
This includes whether the property is freehold,leasehold or commonhold, The name and address of the seller, whether the property is sold with vacant possession and the registration details of the property
- An Index
The index has to list all the documents included and where any are missing it must explain why they are not present.
- An Energy Performance Certificate
A document that rates how energy efficient a property is.
- Standard Searches
- Evidence of Title
Local Authority Searches, Land Registry Search, Drainage and Water Services.
This comprises the relevant property register title documents.
Who pays for a Home Information Pack
The person selling the property is usually required to pay for the HIP.
How much does it cost
Estimated costs for a HIP are around £400 but these vary property to property. The biggest single charge will be the home energy report which could be around £150.
HIP Exclusions - Can I avoid paying for a HIP?
Houses not publicly marketed and sold privately can escape a HIP. This would include sales to family or friends or specialist purchasers such as quick sale cash buyers
Additional Reading:
Using a quick sale agent and avoid a HIP