Do you need a Home Information Pack?
From the 14th of December 2007 all residential properties going on the market in England or Wales will be required to order a HIP.
Any property on the market before 14th December 2007, will not need to produce a HIP. However, a date will be set when all properties that remain on the market will be required to have a HIP. This date will be set according to market conditions as HIPs bed in.
There are some circumstances when a HIP is not needed. These are as follows:
- Properties not offered to the open market (e.g. sale to member of your family)
- Non-residential properties
- Seasonal and holiday accommodation
- Mixed sales (e.g. shop with flat)
- Right to buy and similar sales
- Sales of portfolios of properties
- Properties not being sold with completely vacant possession
- Unsafe properties and properties to be demolished.
If you think you need a HIP, go to our 'Ordering a HIP' page which will take you through the process of ordering a HIP - there is no commitment until you have accepted our price which will depend upon your exact requirements.
Home Information Pack Index
The compulsory documents include a Home Information Pack Index listing the documents contained in the Pack.
The Index provides a checklist for sellers, buyers, estate agents and enforcement authorities. Where a document that must be included in the Pack is unavailable, the Index must say so, give the reason it is missing, and indicate what steps are being taken to obtain it. Where documents are added to or removed from the Pack at a later stage, the Index should be revised accordingly.
Energy Performance Certificate
Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A.
The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.
The average property in the UK is in bands D-E for both ratings. The Certificate includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment. Sellers of newly built homes will have to provide a predicted assessment of the energy efficiency of the property, but a full Energy Performance Certificate should be provided to the buyer when the home is completed.
Sale Statement
- The Sale Statement gives basic information on the property which should include the following:
- The name of the seller and the address of the property being sold
- Whether the property is freehold, leasehold or commonhold
- Whether the property is registered or unregistered
- Whether or not the property is being sold with vacant possession
Searches
The Home Information Pack must include the local land charges register relating to the property being sold. If the search is carried out by the local authority, an official search certificate will be provided. Alternatively a personal search company can be used.
Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack regulations. A local authority or a personal search company can be used.
The provision of drainage and water services to the property. The local water company or a personal search company can be used.
Evidence of Title
These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the Land Registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:
1. Official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register)
2. An official copy of the title plan
In the case of the sale of a commonhold interest, official copies of the register and title plan should be produced for both the unit and common parts The Land Registry has details of additional requirements for sales of commonhold properties.
For sales of unregistered land, the Pack must include copies of a certificate of an official search of the index map (obtained from the Land Registry), and those documents that the seller intends to rely on to provide evidence of title to the property, and thus the right to sell it
Leasehold & Commonhold Documents
Most of the documents that must be included in the Home Information Pack are applicable to all transactions, but some are needed only for leasehold and commonhold sales.
From the 1st June 2008 the required leasehold documents are:
- A copy of the lease (the only document currently required in a Leasehold HIP as per amended regulations coming into force from December 14th 2007)
- Any regulations or rules that apply to the property that aren't mentioned in the lease and any proposed amendments to the property
- Statements or summaries of service charges covering the previous 36 months
- Where appropriate, the most recent requests for payment of service charges, ground rent, insurance against damage for the building in which the property is situated, and insurance in respect of personal injury caused by or within the building during the 12-month period before marketing began
- The name and address of the current or proposed leaser, and details of any managing agent that has been appointed or proposed by the leaser to manage the property.
- A summary of any works being undertaken or proposed that will affect the property or the building in which it's situated.
Please note: as part of the recent announcements made by the Government regarding HIPs the HIP regulations are temporarily amended so that the lease document itself must be included, but other leasehold information will not be introduced as a requirement until the 1st June 2008
The required commonhold documents are:
- An official copy of the individual register and title plan for the common parts. This is in addition to official copies for the unit.
- An official copy of the commonhold community statement. (this can be downloaded from the land registry – link?)
- Where they are reasonably obtainable, or sellers can reasonably be expected to be aware of them, the following documents and information are also required:
- Copies of any regulations or rules not described in the commonhold community statement and any amendments proposed to those regulations or to the commonhold community statement.
- Copies of any requests for payments made in the previous 12 months in respect of commonhold assessment, reserve fund levy and insurance (if not covered by a request for commonhold assessment).
- The name and address of any managing agent or other person appointed or proposed to be appointed by the commonhold association to manage the commonhold.
- A summary of current or proposed works affecting the commonhold.
Optional Documents
The optional parts of a Home Information Pack (known as 'authorised' documents) include the following:
- Home Condition Reports
- Legal summary
- Home use/contents forms
- Other documents
Home Condition Reports
A Home Condition Report contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report.
The Report is an important part of the Pack, and can be included by sellers on a voluntary basis.
Sellers who provide a Report will have an early opportunity to carry out repair work on the property or obtain quotes prior to marketing.
Buyers can use it at the beginning of the home-buying process to minimise the possibility of being faced with unexpected repair bills and other surprises.
Lenders can benefit by using the Reports to inform their valuations, reducing the need to repeat a detailed on-site inspection at the buyer's expense.
Legal Summary
Home Information Packs will contain some complex documents that can be difficult to understand. The optional summary of the legal content of the pack could therefore be very helpful to buyers, although it will not remove the need for buyers to take their own legal advice as well.
Home Use / Contents Forms
Home Use and Home Contents Forms let sellers give buyers information on a range of matters relating to the property.
These include information on boundaries, notices, services, sharing with neighbours, planning permissions and other matters of interest to potential buyers.
It is usual for sellers to declare which fixtures and fittings and other contents of the property are included in the sale, are excluded from the sale, or are subject to negotiation. Standard forms to help sellers do this are available on our Publications page.
Other documents
Sellers could speed up the sale if they include non-standard searches in the Home Information Pack where appropriate.
For example, it's standard practice to obtain a mining search in areas where coal mining has taken place. Sellers in these areas will save time if they provide this search in the Pack.
Other searches cover rights of way, ground stability and actual or potential environmental hazards such as flooding and contaminated land.
Sellers will also want to include guarantees and warranties for work already carried out on their homes.
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