Home Information Packs (HIPs)
Why HIPs Were Introduced
When conceived several years ago, the Government claimed the purpose of HIPs was to speed up the process, reduce the cost, and eradicate gazumping and gazundering. So far, regrettably, there is no evidence of any of this happening.
The Government have now 'weighted' their reason for HIPs as being more to do with the “green factor.” They say that Energy Performance Certificates provide greater understanding of the relative energy efficiency of properties and highlight areas where they can be made more efficient. Whatever the real reason, HIPs are now law.
In case this is the first you have heard of HIPs, here is a brief resume:
Home Information Pack (HIP) is a package of documents to be prepared before marketing commences and which must include;
a) An Energy Performance Certificate - EPC
(this gives a rating of the insulation and CO2 performance of a property)
b) Basic Title Documents
c) A Local Authority Search, plus water and drainage searches
d) A Property Information Questionnaire - PIQ
(similar to the preliminary enquiry form a buyer’s solicitor uses)
e) An Index of what the HIP contains.
f) A Sales Statement, which shows the address of the property, its tenure, its owner and its sale price.
g) For Leasehold properties, a copy of the Lease.
A HIP can also contain other documents should a seller wish to include them, such as a Home Condition Report, Warranties/Guarantees for work carried out and maybe additional searches.
The cost of a HIP is the seller’s responsibility. It’s authenticity is the selling agent’s responsibility even though in most cases they will not have produced it themselves.
Because a HIP has to be in existence before a property can legally be placed on the market, it is essential that sellers plan ahead to avoid any delay. The seller is the person responsible for completing the Property Information Questionnaire (PIQ), and as such will be responsible in part for just how quickly marketing can begin.
It’s all easy with Burns & Webber. Speak to us in advance of when you wish marketing to begin. We have a very efficient system for HIP production that will allow you to market your home with the minimum delay.
