What are the contents of a Home Information Pack?

The pack must contain:

• Terms of sale
• Evidence of title
• A property information form
• A fixtures and fittings form
• Planning consents, agreements and directions and building control certificates
• Warranties and guarantees for new properties and for any work carried out on the property
• Replies to standard searches
• An Energy Efficiency Certificate

HIPs for new build properties will not require a Home Condition Report if the property has an NHBC certificate or equivalent.

Leasehold properties will need to provide:

• A copy of the lease
• Recent service charge accounts and receipts
• Current and planned future works
• Buildings insurance policy details and payment receipts
• Regulations made by the landlord or management company
• Memorandum of articles of the landlord or management company

Other documents which may be included:

• A Home Condition Report (HCR)
• A summary or explanation of any pack document
• Information identifying the property including a description, photograph, map, plan or drawing of the property.

Hips for new build properties will not need a Home Condition Report if the property has an NHBC certificate or similar.

Wasn't the Home Condition Report going to be a required document?

Yes, but the Government has now decided that the report need now only be an authorised document. It is still the Governments view that these will prove beneficial to both buyers and sellers and they will be monitoring the report take up.

Why HIPS?

It is estimated that 28% of deals collapse due to information coming to light after a formal offer has been made. The Government's intention is that it will make the buying and selling of a property a much simpler process and will reduce the number of transactions that do not proceed to exchange and completion, Nearly 9 out of 10 consumers are unhappy with the current Conveyancing system. The packs will also assist first time buyers in the sense that it will be less expensive for them to get a foot on the property ladder

Who is responsible for supplying the pack if the property is being purchase under a Right to Buy?

RTB properties are excluded from the legislation due to the fact that the property is not being openly marketed. The possibility of adopting the HIPS principals for RTB properties is currently being examined. Shared Ownership properties will require a Home Information Pack.

Will Home Information Packs be required for Auction Properties?

Yes.

How long will the pack be valid for?

The pack will be valid for as long as the property if marketing for sale. The Regulations allow for a period where the property might be taken off the market due if, for example, the seller is changing Agents or the property has previously been under offer. The only time sensitive aspect of the pack is the local search which only have a shelf life of 6 months. The Regulations make no provisions for the local search to be renewed.

What is an Energy Performance Certificate?

The EPC will contain energy ratings for homes. It will outline the cost of heating, hot water and lighting in homes and will give practical advice on how to cut these costs and reduce carbon emissions. It will also provide sellers and buyers with an A-G rating on their homes. By acting upon the recommendations, it is anticipated that the average homeowner will save £300 every year on fuel bills. Recommendations could include information as to who to insulate your loft better through to the use of solar panels.

Who is authorised to carry out the Energy Performance Certificate?

These must be carried out by a properly trained Inspector. The Government are currently identifying those parts of the Home Inspector Qualification that are likely to be required to enable prospective Home Inspectors to qualify as Energy Inspectors. As the Home Condition Report may still form part of the HIP (albeit as an authorised rather then required document), those Inspectors who have already completed the relevant part of the Home Inspector Diploma will, once certified, be able to practice as an Energy Inspector. In the meantime, the Government are devising an interim qualification to enable Home Inspectors to carry out EPC without having to complete the full Home Inspection qualification.

Is it necessary to have a complete pack at the time the property is marketed?

No, the seller must have commissioned a HIP pack at the time the property is marketed. If a particular document is proving difficult to obtain, the seller can market the property 28 days after the outstanding document has been requested. The seller must have taken all reasonable steps to obtain the outstanding document and must include the outstanding document in the pack asap.