Home Information Packs
Home Information Packs (HIPs)
What is a HIP?
This is a pack of documents that, taken together, are designed to give the buyer all the information they (and their mortgage lender), need to make an informed purchasing decision.
They are not yet at that level, but certainly should mean that buyers spend less on surveys (for their own use or those of lenders), at least for standard properties in good condition where the buyer has a good deposit.
All the information below is subject to change as HIPs rules are an evolving area, so if you are buying/selling a property, take advice.
- You can market a property without a HIP, so long as one has been ordered.
- The HIP must be provided at exchange of contracts.
- HIPs themselves grow as the various documents are obtained. The rules state that once the Energy Performance Certificate is available, the HIP must be made available to potential purchasers.
What's in a HIP
Some documents are compulsory:-
- HIP Index - a list of the documents that are includes, and, for any compulsory ones that are missing, a reason why they are missing (for example a search might have been requested, and is awaiting response from the Land Registry).
- Energy Performance Certificate - tells you how energy efficient the property is, and might highlight ways to improve.
- Sale Statement - basic information about the property.
- Standard Searches - the main searches.
- Evidence of Title - documents detailing title.
Others are optional:-
- Home Condition Report - Information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report.
- Legal Summary - a summary of some of the complex legal documents.
- Home use/contents - details of which fixtures/fittings are included in the sale, boundaries, services, planning etc.
- Non standard searches - e.g. mining, flooding, contaminated land, rights of way, ground stability etc.*
- Guarantees and Warranties - where they exist for work of importance to any buyer, eg. recent rewiring, new kitchen/bathroom etc.
* If you are a seller, it's worth getting them if you think buyers will expect them. If you are a buyer, and an expected one is missing, talk to your lawyer. Use your judgment. The author lives in Gloucester and while I would expect a Flood Search, and a Contaminated Land Search (if an industrial redevelopment), I wouldn't expect a Mining one.