Home Information Packs [HIPs]

During 2007 the Government introduced the requirement for a Home Information Pack [HIP] when selling a home in England and Wales. 

The seller must have commissioned the preparation of a Home Information Pack [HIP] before marketing their property. The date for requiring the Home Information Pack [HIP] to be ready before selling a property has been moved back  from June 2008 to the end of December 2008.  

The Government made concessions during the transitional period as follows:

• Properties with four or more bedrooms registered for sale prior to 1 August 2007, do not require a Home Information Pack [HIP].
• Properties with three bedrooms that were registered for sale prior to 10 September 2007, do not require a Home Information Pack [HIP].
• Properties with less than three bedrooms registered for sale prior to the 14 December 2007, will not require a Home Information Pack [HIP].
   

The regulations provide that the Home Information Pack  [HIP] must contain:

• An index;
• An Energy Performance Certificate (or equivalent for new builds);
• The sale statement;
• Official copy entries of the title and plan at the Land Registry or Epitome of Title for unregistered land;
• Local Authority Search;
• Water and Drainage Search.

If the property is leasehold, it will also be necessary to include a copy of the Lease. From the end of 2008 the Home Information Pack [HIP] will also need to include:

• Most recent service charge accounts and receipts;
• Buildings insurance policy details and payment receipts;
• Regulations made by the landlord or management company; and
• The memorandum and articles of association of the landlord or management company.

It is only necessary to include a personal local authority searches in your Home Information Pack [HIP].  These are produced by search agencies which search against the official records of the local authority and water and drainage bodies and are usually cheaper than a full authorised Local Authority Search. However, many lenders either will not accept a personal search or accept it with qualifications.  If a personal search is included in the HIP, the buyers’ solicitor may well decide to carry out an official search on behalf of their client and this may cause a short delay etc.

Home Information Packs [HIPs] are not required for residential property if it is not available for sale with vacant possession.  For example, a buy to let property which is fully occupied by tenants. 

Home Information Packs [HIPs] will not have to be provided on the sale of the following:

• Business premises;
• Mixed user properties (where the use of the property is both residential and business or, in some cases, if a residential property is marketed for sale together with business premises); on portfolio sales of a number of properties;
• Mobile or Park Home;
• Houseboats;
• Unsafe and derelict properties or property sold for demolition and redevelopment; and
• Private sales (where the property is not being sold through an estate agent, e.g. where your neighbour was aware that you wanted to sell because of conversations then no marketing has taken place).

Commissioning a Home Information Pack [HIP]

Your contact in the Furley Page residential property team can commission a Home Information Pack [HIP] on your behalf.  The HIP will then belong to you and be portable between estate agencies, which is useful if you have not yet chosen your estate agent or you wish to change agents. The costs involved will vary and we can supply full details on application.  At present the lowest cost HIP with a personal search is £299 including VAT.

• © Furley Page LLP 2008
• | LLP
• | Terms and Conditions
• | Privacy Policy
• | Site Map
• | Accessibility