I know HIP’s are old hat by now but there still seems to be some confusion over them so here is a comprehensive guide to HIP’s for buyers.
It is now by law that every property marketed in England and Wales require a HIP or Home Information Pack. The main essence is to provide all the essential information that a home buyer would need at the very beginning of the buying process. The packs are free for the buyer and the information should be requested for any property that you may be interested in. Legally any seller must provide a home information pack within fourteen days of the request.
So what exactly is included in the home information packs and why is it necessary? Many people believe that they are a waste of time and do not provide any valuable information for the consumer, plus a recent survey suggested that three quarters of buyers do not ask to see the pack and the majority do not even know what information can be found in them. The information that can be found in the hips is compulsory (required) or option (authorised), taking a look at the required information this includes the following.
Home Information Pack Index
This lists the documents that are contained within the pack and will indicate to the buyer that all of the relevant documents are available and if not explain why they are not included. A buyer can also check to ensure that none of the documents are missing.
Energy Performance Certificate
The awareness of the environment is growing amongst society and the energy performance certificate provides a detailed breakdown of the properties energy efficiency by using the energy efficiency scale. The scale rates a property from A – G, band A is the most efficient homes, the better that rating the less impact a property should have on the environment through emissions and Co2 (carbon monoxide). It is thought that the majority of properties will be in the band D – E area, the certificates also provide information on how the property can be made more energy efficient.
Sale Statement
This part of the pack provides basic information on the property items will include the address, the class of property (freehold, leasehold, commonhold), registered or unregistered property and whether the property is vacant possession or not.
Standard Searches
Before buying a house local authority searches are carried out, these are now contained within the home information pack. The searches include a land search, any other records held by the local authorities such as planning regulations and any drainage and local water authority information.
Evidence of Title
This part of the pack simply proves that the seller owns the property and has evidence of the land and title deeds. Included will be the official copies of the individual register and an official copy of the title plan.
Leasehold and Commonhold Properties
There are some additional documents that are required for leasehold and commonhold property sales only. These are not required for anyone who is buying a freehold property and will not be included in the home information pack.
The list above are all the compulsory elements that make up the home information packs, as mentioned there are optional elements that the seller can include should this be deemed necessary. These include the below.
Home Condition Report
Legal Summary
Home Use/Contents Form
Other Documents such as work guarantees, flood risk, environmental information.
Before you buy a property in England and Wales make sure you request a copy of the home information pack, as you can see from the list above there is lots of information contained that could be of use. The HIPs have had a bad billing in the early days and many people have suggested that they are a waste of time and resource, you can make your own mind up as to whether this is the case, but they are now here to stay.