From 14th December 2007 any property being marketed as ‘for sale’ must have a Home Information Pack, commonly known as a ‘HIP’. Each HIP provides information about the property including a statement of the terms of the sale, a local search, water & drainage search, evidence of the seller’s title and the property’s home energy rating.
It is the seller’s responsibility to commission a HIP when they put their property on the market. Prospective buyers should make sure that they have seen the HIP before they make an offer on the property. HIP’s are designed to make the process of buying and selling a property more efficient as key information is provided early-on.
Why should you commission Savilles Solicitors to produce your HIP?
Savilles Solicitors are experienced conveyancers who have strong business links within the Stockport area. We can provide your HIP for £299.00 plus VAT for a freehold property. We only use locally based search providers and energy inspectors ensuring that your HIP is produced reliably and quickly.
Savilles Solicitors provide a complete conveyancing service and are happy to deal with your property from creation of your HIP through to completion of the sale. Our small team offers a reliable, fast and approachable conveyancing service.
What is included in a HIP?
The Home Information Pack Regulations determine what must be included in a HIP.
There are a number of documents that must appear within a HIP (known as required documents):
An index listing the contents of the HIPA sale statement (summarising terms of sale)
Evidence of seller’s title
Standard searches (i.e. local authority enquiries and a drainage and water search)
Energy Performance Certificate
Further information is required if the property is leasehold or is not physically complete.
In addition there are documents which may be included within a HIP (known as authorised documents):
Guarantees and warranties
Other searches and,
(where appropriate) additional leasehold information
What are the potential benefits of having a HIP for the seller?
Giving the potential buyer information at an early stage enables them to make an informed decision when putting in an offer on your property. This is intended to speed up the sale process and reduce the number of transactions falling through.
If you commission Savilles Solicitors to provide your HIP you may wish to take advantage of our service providing a ‘health check’ on the documents obtained for your HIP. HIP providers do not generally assess the documents they obtain but will simply produce a HIP with the required information and issue it to you or your Estate Agent. Savilles Solicitors are able to check your title to the property and search results with a view to identifying any potential problems which are likely to come to light during the conveyancing process. The fee for providing this service is £50 +VAT However, if you use this service and then go on to instruct Savilles Solicitors to represent you in the sale of your property we will provide a £50 reduction on your conveyancing fees.
What are the benefits of having a HIP for the buyer?
All potential purchasers have free access to the HIP giving them a clear picture of exactly what they would be buying if they were to make an offer. This should reduce the number of transactions falling through in the early stages.
If you are considering making an offer on a property you may wish to take advantage of Savilles Solicitors HIP checking service. HIP providers do not standardly assess the documents they obtain; they will simply produce a HIP containing the required information. Savilles Solicitors are able to check the basic information provided by the HIP and obtain some further documentation relating to the property. We will then provide a checklist of issues that should be addressed with the seller before proceeding with making an offer to buy the property. The fee for providing this service is £75 +VAT.
Do I really need to have a HIP?
If your property is being marketed you must have commissioned a HIP, this applies even if you are simply placing a ‘for sale’ sign in your window. Only if you have taken no action whatsoever towards marketing your property for sale will you be exempt from providing a HIP to prospective buyers.
Currently it is acceptable to place your property on the market as soon as the HIP has been commissioned so long as your HIP provider has requested the relevant searches etc. From 1st April 2009 you must have a full complete HIP on the first day you place your property on the market.
What should I do if no HIP is provided?
Initially you should request a copy of the HIP from whoever is marketing the property; it should be provided within 14 days (They are entitled to charge a small fee for copying and postage). There are limited reasons the seller can provide for refusing to issue you with a copy of their HIP. These are:
1) they do not believe you have sufficient funds to purchase the property
2) they do not believe that you are really interested in buying the property
3) they would not wish to sell you the property
Please note although the seller is able to refuse on these grounds they are not permitted to unlawfully discriminate against anyone requesting a copy of the HIP. If you believe that you have been unlawfully denied a copy of the HIP contact your local authority trading standards office for advice.
How long is the HIP valid for?
The HIP must contain search results obtained within 3 months of the date the property was placed on the market. Once the property is on the market there is no obligation for the HIP to be updated.
The HIP continues to be valid while the home is being marketed and the Home Information Pack Regulations allow for a period where the property may be taken off the market for a short time because, for example, it is under offer or the seller is changing Estate Agents.
Local Searches are generally considered to be valid only for 6 months.
