HIPs: a seller's guide

Why you need a HIP

It is a legal requirement to have a HIP and you can't market your property without one. The HIP lets buyers see important information on the property at the start of the process, free of charge.

This means there's less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.

You don’t need a HIP for:

• properties where there is no marketing, for example if you are selling to a member of your family
• non-residential properties
• properties limited by law to use as holiday accommodation or occupation for less than 11 months per year
• mixed sales, for example a shop with flat
• sales of portfolios of properties, for example selling two properties together
• properties not being sold with completely vacant possession, for example with a sitting tenant
• unsafe properties and properties due to be demolished
• properties sold through the ‘Right to Buy’, ‘Right to Acquire’ and ‘Social HomeBuy’ home ownership schemes

What is in a HIP

The HIP is made up of required (compulsory) and authorised (optional) items.
There shouldn't be any marketing or advertising material in the pack, so make sure it contains official information only.

From 6 April 2009, the HIP must be available and contain the following documents on the first day a property is put on the market:

• Home Information Pack Index
• Property Information Questionnaire (PIQ)
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
  
• sustainability information (required for newly built homes)
  
• sale statement
  
• evidence of title

If the following documents are unavailable when marketing begins, they should be added to the HIP as soon as they are available. These documents must be included within 28 days of the date the property was first placed on the market:

• standard searches (local authority and drainage and water)
  
• a copy of the lease for leasehold properties
  
• commonhold documents, where appropriate

Where you can get a HIP

If you need to get a HIP, you can choose any of the following options:

• get an estate agent to do it
• use a solicitor or a licensed conveyancer
• use a specialist HIP provider
• compile it yourself

Finding a HIP provider

If you are commissioning a HIP, you should shop around as prices vary, and check the terms and conditions of your contract. You should always make sure that your HIP provider is signed up to a code of practice, like the HIP Code.
You can find more here: www.nationalhipcentre.co.uk

Buyers and Sellers

From 6 April 2009, the HIP must be available on the first day a property is marketed for sale. If you are buying a property, just ask whoever is advertising it for sale for a copy of the Home Information Pack. This is usually an estate agent, but could be another business or individual.

They must give you a copy of the pack free of charge. However, they may make a reasonable charge to cover the costs of copying and posting it.

From 6 April 2009, the 'responsible person' (in most cases, the estate agent) will not be allowed to market your property unless the HIP is available. You'll need to make arrangements to have a HIP compiled (including paying for it) along with other preparations for selling your home. However, if there's a delay in getting certain documents, like the local searches, these can be added after your house is put on the market.

Who compiles the HIP?

You can compile it yourself or you can hire an estate agent, solicitor or HIP provider to do it for you. Always make sure that your HIP provider is signed up to a code of practice, like the HIP Code.

Who pays for the HIP?

The seller is responsible for the cost of a HIP. The cost can vary so make sure you shop around. Some providers may offer HIPs that you can pay for at a later date but you should always check the terms and conditions of your contract.

Compulsory documents and optional documents

The following documents must be included in your HIP:

Freehold properties

• Home Information Pack Index
  
• the new Property Information Questionnaire (PIQ), from 6 April 2009
  
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
  
• sustainability information (required for newly built homes)
  
• sale statement
  
• evidence of title
  
• standard searches (local authority and drainage and water)
  

Leasehold properties

• all the compulsory documents above
• a copy of the lease

Other documents can be included within your HIP, but these are optional. If they are included, it could help to speed up the sale and ensure that the process goes more smoothly. These include:

• Home Condition Report
• legal summary
• home use/contents form
• other documents like specialist searches (for example, the seller may choose to include a mining search in a mining area)

Why do you need a HIP and What does a HIP contain

A HIP is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller's agent. It is a legal requirement to have a HIP and you can't market your property without one.

The HIP lets buyers see important information about the property at the start of the process, free of charge. This means there is less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.

The HIP is made up of required (compulsory) and authorised (optional) items.

There shouldn't be any marketing or advertising material in the pack, so make sure it contains official information only.

Listed below are all the compulsory documents that need to be included.

7: Standard searches

The Home Information Pack must include:

A search of the local land charges register for the property being sold

This is carried out by a local council or personal search company and you’ll receive an official search certificate.

A search of the records held by the local authority on matters of interest to buyers

This includes planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack Regulations and are carried out by a local authority or personal search company.

Details of the provision of drainage and water services to the property

The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations).

See the section on ‘Finding your local council or a personal search company’ in ‘HIPs: Compiling a Home Information Pack’ for more information about land searches.

6: Evidence of title

These documents prove who owns the property.

Registered property

If the property is registered, certain documents that are available on request from the Land Registry must be included in the HIP. These provide an up-to-date official record of who owns the land, and consist of:

• official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register)
• an official copy of the title plan
  

In the case of the sale of a commonhold interest, official copies of the register and title plan should be produced for both the unit and common parts.

Unregistered land

For sales of unregistered land, the HIP must include copies of a certificate of an official search of the index map (from the Land Registry). Also, it must have the documents that the seller intends to rely on to provide evidence of title to the property and the right to sell it.

5: Sale statement

The sale statement provides some basic information about the property, including:

• the address of the property being sold
  
• whether the property is freehold, leasehold or commonhold
  
• whether the property is registered or unregistered
  
• whether or not the property is being sold with vacant possession, for example with a sitting tenant
  
• in what capacity the seller is selling the property (for example, selling on behalf of a deceased owner)