Home Information Packs - Cost and Guide
Essential HIPs Information
You may have seen or read about Home Information Packs, HIPs or Sellers Packs in the media or on the internet but how much do you know about them? The aim of a pack is to speed up the conveyancing process and reduce the risk of a transaction falling through. Information relevant to the buyer is accessible right at the beginning of the matter, rather than part way through. This is only half of the story as the HIP on its own will not ensure a smooth and problem free transaction. You should ensure that you instruct a competent, experienced solicitor to deal with the transaction for you. Please see our Tips for an Easy Move for more information.
We have set out below frequently asked questions about HIPs and there are links to useful resources to provide further information. Whilst we hope you will find these pages useful if you have any questions or would like to discuss your HIPs requirements please do not hesitate to call us on FREEPHONE 0800 970 2307 or Request a Callback.
Do I need a HIP?
If you are selling your property then generally you will need a HIP. There are some exceptions, for example if it is a private sale (where the property is not marketed), when you will not need a HIP but if you are in any doubt please contact us for advice.
Our Home Information Packs
In order to offer the most comprehensive service to our conveyancing clients we offer HIPs when instructed in connection with the conveyancing for the sale of the property. The Home Information packs we supply are produced by a company called PSG who subscribe to the HIP Code and whose packs are fully compliant. We have found them to offer a consistent level of quality, service and price.
How much will my HIP cost?
Freehold Property - £295 fully inclusive of VAT
Leasehold Property - £315 fully inclusive of VAT - (additional cost of £20 for an Official Copy Lease issued by the Land Registry).
Please note we do not add any charges to the home information pack and charge the amount it costs to us. saving you money!!
Who will prepare the HIP?
If you wanted to you could produce the HIP yourself however as most people as unsure as to what is required to be contained most people wish to have the HIP produced for them. We instruct a company called PSG to produce the HIP for our clients. PSG subscribe to the HIPs Code and all their Home Information Packs are fully HIP Code Compliant. We have found them to be fast, efficient and reliable and offer nationwide service at a consistent quality and price.
What is in a HIP?
A HIP contains a number of documents. Some of the documents must be in the pack (Required Documents). Others are not compulsory but may be included (Authorised Documents) and therefore you may include them if you wish. The inclusion of these documents may enable time savings later in the transaction and so please do not hesitate discussing with us the pros and cons of including such documents.
Required Documents are:
- An index of the contents of the pack
- Sale Statement (which will summarise the terms of the sale)
- Evidence of Title to the property
- Standard Searches (which will be the local search and the water and drainage search)
- Energy Performance Certificate (also referred to as the “EPC”)
- If the property is leasehold the pack will also contain a copy of the lease and leasehold information, for example details of service charges and the landlord’s name and address.
- If the property is commonhold certain documents will also be included which are similar to those required for a leasehold property
Authorised Documents are:
- A Home Condition Report
- Additional searches, for example an environmental search or (if the property is in an area of coal mining) a coal mining report.
- Warranties and Guarantees
- Home Contents Form
The government has produced a leaflet advising what you should look for in a HIP and this can be viewed by clicking on the following link - What to look for in your Home Information Pack
What will the HIP look like?
Because the content of a HIP is, in part, prescribed your HIP will resemble the sample pack which has been provided by the government on their Home Information Pack website. The sample pack can be viewed by clicking on the following link - Sample Home Information Pack
What is an Energy Performance Certificate (EPC)?
The EPC contains an energy rating for your home indicating how energy efficient it is on a scale of A to G, where A is the most efficient. The scale looks the same as the stickers you see on the front of fridges and other household appliances in electrical stores. It will outline the estimated costs for heating and lighting the property and for providing hot water. It will also contain practical advice on how to reduce these costs and carbon emissions.
Do I need a solicitor to produce a HIP?
No, you don’t. If you wanted to you could produce the HIP yourself however as most of the documents in a HIP are legal in nature we are well placed to put the pack together quickly and efficiently. Anyway, if you sign up to our Fee Free HIP scheme we will not charge you to compile the HIP so why go to the hassle? We adopt a flexible approach and if you wish to source any element of the HIP yourself (for example the EPC) we will incorporate this into the HIP upon receipt. Please contact us or request a callback to discuss this further.
When can I market my property for sale?
Until ** December 2008 you can market your property for sale once the Required Documents for the HIP have been ordered. You do not need to wait until the Required Documents are ready but you are obliged to obtain them as soon as possible and the HIP must be provided to potential buyers once the EPC has been received.
After ** December 2008 the Government will issue further guidance.
For how long will the HIP be valid?
The HIP will be valid for as long as the property is marketed. The regulations governing the production of Home Information Packs provide that certain documents within the HIP must be produced within certain time limits prior to marketing the property. The documents which are evidence of title and the searches cannot be more than 3 months old when a property is first marketed and the EPC cannot be more than 1 year old. Accordingly you could not use the searches from when you bought, unless of course they are less than 3 months old when you market the property. The regulations also make provision for a period where the property might be taken off the market (for example if the property is under offer). The property can be remarketed using the same HIP provided remarketing takes place within 1 year of it first being marketed. The searches in the HIP are valid for only 6 months but the regulations make no provision for them to be renewed.
What if I need a HIP but do not get one? Is there a penalty?
If you need a HIP your estate agent will not market the property without one as they will be in breach of the rules. If you require a HIP and market the property yourself rather than through an agent you will be in breach of the rules. Local Authorities are responsible for enforcing the regulations and if there is a breach the penalty is a £200 fine, though they may give advice or a warning to begin with.
Beware the Free HIP
Some conveyancing solicitors, conveyancing service providers and estate agents are offering so called "Free Home Information Packs". Unfortunately with the constituent parts of the home information packs currently costing, on average, £250.00 plus, we are, unsurprisingly, skeptical of such offers. Some Home Information Packs are not compliant with the legislation with buyer's solicitors refusing to accept them, and many estate agents offering free HIPs are upping their agency fees to cover the cost of these. It is often the case that either you may end up paying far more in the long run as a new pack may need to be commissioned and indeed paid for causing delays in the conveyancing process or find that if you choose to move estate agents, you do not own the pack that has been prepared on your behalf, resulting again in having to commission a new Home Information Pack. In some instances the free HIP comes with "strings attached" in that you must use the agents recommended solicitors, with much higher fees than you would wish to pay. As with any offer that appears too good to be true, we strongly recommend you carefully investigate the terms and conditions (small print) with such offers and ensure what is described as "free" really is "free".
Where can I get more information?
If you have any specific enquiries we are more than happy to discuss these with you. To contact us please see out contact us page.
Alternatively you may wish to look at one of the links set out below:
Conveyancing Costs Calculator
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