MCP Solicitors' Guide To Home Information Packs (HIPs)
On the 21st May 2010 Home Information Packs were suspended. The requirement for Energy Performance Certificates remain. Legislation will be required to formally abolish HIPs completely. The following information is therefore retained for reference purposes only.
A Home Information Pack (HIP) is a pack containing essential information about the property. The Home Information Pack's main purpose is to speed up the process of buying and selling property as it contains some of the information that a buyer would need to know before making a purchase.
The Home Information Pack should be created when the property is first put on the market. MCP Solicitors creates Home Information Packs for sellers and is able to provide comprehensive advice and deal with issues that may arise when compiling the Home Information Pack.
What does a Home Information Pack (HIP) contain?
The three main components of a Home Information Pack (HIP) are:
- Title documents to prove that the seller does actually own the property
- Local search information
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Energy Performance Certificate (EPC). The Energy Performance Certificate contains information on how to reduce energy emissions and also rates the property efficiency on a scale from A to G.
When is a Home Information Pack (HIP) required?
A Home Information Pack is required before you market your house, so as soon as you decide you want to sell your house you should think about getting a Home Information Pack.
What types of properties will require a Home Information Pack (HIP)?
The general principle behind Home Information Packs is that they are aimed at private home owners who are planning to sell their own property. Therefore, the following properties are not required to have a Home Information Pack:
- Non-residential properties
- Tenanted residential properties at the time of the sale
- Seasonal and holiday accommodation
- Mixed sales
- Dual use properties
- Sales of portfolios of properties
- Unsafe properties
-
Properties to be demolished and redeveloped
Do new-build properties require a Home Information Pack (HIP)?
All new-build properties need a Home Information Pack regardless of their building regulations.
If a property has a large amount of land is it exempt from having a Home Information Pack (HIP)?
Currently if a property includes 5 hectares, or approximately 13 acres, of land, that is used for either grazing animals, is woodlands or is used for horticulture, then no Home Information Pack will be required. This is because these are seen as primarily commercial activities, and are therefore not designed to require a Home Information Pack.
Do properties with multiple buildings require a Home Information Pack (HIP) for every building?
Yes, a Home Information Pack will be required for ALL properties that are being sold, for example cottages within a large estate or a granny-annex. Where the properties reside within the same Title, the Home Information Packs will be extremely similar, although a new Energy Performance Certificate will be required for each.
Do garages and outbuildings require a Home Information Pack (HIP)?
No, only properties that are designated for residential use will need a Home Information Pack.
Are private sales exempt from Home Information Packs (HIPs)?
Yes, private sales are exempt, so long as the seller has not marketed it in any way to the public. Even if an Estate Agent is not used, if the property has been marketed on the internet for example, then a Home Information Pack (HIP) is still required.
What are the benefits of doing the Home Information Pack (HIP) and conveyancing together?
MCP Solicitors offers a substantial discount for our Home Information Packs if you also use us for conveyancing. Not only is this far more cost effective, but it also makes selling your property quicker and easier as we already have all the information we need to act in your conveyancing. This is an added advantage of using solicitors to produce your Home Information Pack as opposed to a non-legal Home Information Pack provider.
Why are solicitors better to provide your Home Information Pack (HIP) than other providers?
As a law firm MCP Solicitors is in a better position to give you comprehensive advice on your Home Information Pack than a non-legal provider. We are far better equipped to deal with issues that might arise when compiling your Home Information Pack. Unlike non-legal providers, we do not have to refer such matters to outside help. This therefore reduces the cost for you.
Who is responsible for the accuracy of the Home Information Pack (HIP)?
The Estate Agent is the person responsible for checking the Home Information Pack is correct, together with the seller. The Home Information Pack provider (i.e. MCP Solicitors) is responsible for providing the correct information.
How long is a Home Information Pack (HIP) valid for?
Technically, there are no time limits on the contents of a Home Information Pack, and there is no obligation on the agent, seller or HIP provider to keep them updated. If the property is taken off the market then the Home Information Pack does not need to be updated if it is put back on within one year.
How long does a Home Information Pack (HIP) take to produce?
We are finding that Home Information Packs are taking a few days to produce a Lite HIP. The main bottlenecks for the full HIP are the drainage, water and local authority searches.
When do prospective buyers receive the Home Information Pack (HIP)?
The Estate Agent can control which prospective buyers they show this Home Information Pack to. However, this must be with the seller's express authority. The seller could restrict it to buyers who have evidence that they have the full purchase price or have sold their own property.
Who obtains Home Information Packs (HIPs)?
Home Information Packs are generally obtained by either your solicitor or Estate Agent. A Home Information Pack is basically a legal pack with an energy certificate so your solicitors are in an excellent position to deal with this.
