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Getting Hip to the HIP

Posted by Erika

Since being introduced in 2007, HIPs have changed the way properties are sold; every property for sale in England and Wales should now hold a Home Information Pack (HIP).

From 6th April 2009, this law was changed slightly and now affects every property being marketed. This means that whether you're using an estate agent to market your property or selling your house privately on Preloved, you will need to ensure you have an accurate HIP in place.

With an ever increasing number of homeowners choosing to bypass agency fees by selling their homes themselves, vendors must be aware that they should have a HIP in place before they do so. If you choose to advertise your own home, you are responsible for ensuring the HIP is available to potential buyers.

What is a HIP?

A HIP is a collection of key information about the property, produced by the vendor of the property (or on behalf of the vendor) and aimed at potential buyers. The HIP is made available at the start of the buying process and is intended to make the process faster, more transparent and less costly for both parties.

A HIP contains no marketing or advertising material, it is purely for official information about the property you are selling. Certain documents are compulsory and must be present in the HIP; others are optional or 'authorised' items.

What's Included?

From 6 April 2009, the HIP is a legal requirement from the first day a property is advertised and must contain the following documents:

• Home Information Pack Index (a page listing the documents included in the HIP)
• Property Information Questionnaire (PIQ) (a sample can be seen here)
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) - (A certification on the energy perfomance of your home carried out by a professional assessor)
• Sustainability information (required for newly built homes only)
• Sale statement (states such things as whether the property is freehold or leasehold, whether it is a house or a flat, the name of the seller and in what capacity the seller is selling the property)
• Evidence of title (a document which demonstrates property ownership)

The following documents should ideally be available when advertising begins, but if not, they must be made available within 28 days of the date the property is first advertised:

• Standard searches (local authority and drainage and water)
• A copy of the lease for leasehold properties
• Commonhold documents, where appropriate

In order to make things as clear as possible for potential buyers from the start of the process, optional documents that you may wish to include in your HIP are:

• Home Condition Report (A simplified survey of your home)
• Legal summary (An optional summary of the legal content of the pack that may be difficult for buyers to understand in its raw form)
• Home use/contents form (A form listing items you are prepared to leave with the property or negotiate on with potential buyers)
• Specialist searches (for example, if you live near a mine)

Where can I get one?

Although HIPs are relatively new, there are numerous routes to producing one for your property. If you're using an estate agent, they will usually be able to produce your HIP or advise on their preferred provider. If you are marketing your home yourself, you could still approach an estate agent for help or alternatively use a solicitor, a specialist HIP provider, or produce one yourself!

If you choose to commission someone to produce a HIP for you, ensure that they are licensed HIP providers and that they adhere to the HIP code of practise. This will mean that a formal complaints procedure is in place should the need arise.

Think carefully before taking the DIY route; although it is mostly straightforward, you will still need a professional to produce an Energy Performance Certificate (EPC), and this may negate the time and effort of going it alone. If you do take this option, you will be responsible for the accuracy of the information; should anything be inaccurate or misleading, you will be culpable. If you employ someone to do it for you, they will have insurance against such mistakes.

What happens if I don't have a HIP?

Watch out! If you do not have a HIP in place when you start marketing your property, you (or your estate agent if you have one) could face a fixed penalty notice, which is currently set at £200.

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