What is a HIP? A HIP or a Home Information Pack is a collection of documents that is required when a home is marketed for sale to the public. Some documents are compulsory and others are optional (but only those documents permitted by the Government may be included). The compulsory documents are also referred to as ‘required’ documents. The optional documents are sometimes called ‘authorised’ documents. The compulsory documents are:
Optional documents may be included if the seller thinks they may help the buyer.
Most home owners request Home Information Packs containing only the compulsory documents. A HIP is usually produced in 2 stages. A Basic HIP is needed before a property can be marketed and the rest of the required documents can be added as they become available. For more information please see the FAQ How long does it take to produce a HIP? How long does it take to produce a HIP? This is a very important question to ask the HIP provider before you enter into an agreement with them because a property cannot be marketed until a BASIC HIP has been made available to the estate agent. Specialist HIP companies make producing the BASIC HIP a priority to allow the home owner to market their property as quickly as possible. The BASIC HIP should be available within 2 to 3 days of ordering a HIP. The Basic HIP contains:
The Local Authority search, the Drainage and Water search and the Lease (if required) can be added to the HIP while the property is being marketed and the complete HIP should be ready in about 5 to 10 days. You can arrange a HIP through a dedicated HIP provider like South Wales HIPs, an estate agent or a solicitor. Specialist HIP providers should have a better knowledge of the HIP regulations than estate agents and solicitors because HIPs are their main line of business. Sometimes, cheap HIPs are offered as part of a deal involving other services. Some of these deals are excellent but It is not unknown for the additional services to be charged at inflated prices to recoup the cost of the 'cheap' HIP. You should also check whether you will be charged an additional fee for the HIP if you decide not to make use of the other service at a later stage. You should satisfy yourself that you are fully aware of the true price of all the components of the deal and any penalties for which you may be liable before you enter into any such arrangement. Buying a standalone HIP direct from a HIP provider allows you to be totally independent in your choice of estate agent and solicitor because the HIP is not tied in to any other product or service. HIP regulations only apply to homes in England and Wales. Alternative regulations apply in Scotland and Northern Ireland. The HIP regulations were phased in during 2007. Most homes coming onto the market since then need to have a HIP. The following list gives examples of properties which do not need a HIP, but there are further exceptions:
Homes which were put on the market before the introduction of the HIP regulations in 2007, and which have been continually marketed since, do not require a HIP. Some estate agents believe that most buyers expect a HIP to be available and not having one immediately shows that the property has been on the market for a long time. These estate agents suggest that vendors may like to consider ordering a HIP even though they do not legally require one. In this case, the property can be marketed while the HIP is being produced. By law, these homes have been required to have an EPC from October 2008. The HIP provider should offer the vendor a reduced price for their HIP because the HIP provider can use the EPC which is already available. EPC is short for Energy Performance Certificate. It is a short document created by a computer program using data provided by a Domestic Energy Assessor (DEA) after a visit to the property. An EPC gives a home ratings for:
The ratings are graded A-G where A is the best. The most efficient homes should have the lowest fuel bills and least impact on the environment through carbon dioxide emissions. Most homes in England and Wales are rated as band D or band E. New homes are usually rated in band B or band C. Band A is rarely achieved by current homes but is provided for homes built in the future using improved materials, methods and technology. The EPC includes recommendations on ways to improve the home's energy efficiency: to use less fuel and to be kinder to the environment. A graph (similar to those found on new fridges and freezers) is included in the EPC showing the current grading of the house. The graph also shows the potential grade that could be achieved by following the recommendations. The EPC is a required document in the HIP and the EPC graph must be included in the estate agent's sale particulars. An EPC is not needed for the sale of seasonal/holiday accommodation where occupancy is limited by law to 11 months in the year, or less. Commercial properties require a 'Commercial EPC'. What is a Property Information Questionnaire? The Property Information Questionnaire, or PIQ, is a short form that must be filled in by the vendor, covering basic information about the property. The PIQ was introduced for properties coming onto the market from 6 April 2009. The PIQ has 17 questions for freehold properties and 27 questions for leasehold properties, covering such topics as:
HIP providers usually give the vendor a choice of which method they would like to use to complete the PIQ, eg entering data into a form online, editing a word document and emailing it back or completing the form by hand and posting it back to the HIP company. The vendor is encouraged to go through the various documents they hold in order to complete the form as fully as possible. The golden rule is that vendors should state that they "don't know" an answer rather than make an incorrect guess where the information is not available. If the vendor is not the actual owner, eg they have the authority to act on behalf of someone who has died, they should make this clear on the form. The vendor should not rely on someone else completing the form on their behalf in case mistakes are made, for which the vendor would be liable. Furthermore, estate agents are actively discouraged from assisting in the completion of the PIQ because any mistake they make on the form could make them liable under the Properties Misdescriptions Act 1991. The HIP Code was introduced to deliver quality standards and a Code of Practice for Home Information Pack providers. It provides protection for homebuyers, sellers, estate agents, conveyancers and mortgage lenders who rely on the information included in a Home Information Pack (HIP). The Government strongly recommends that vendors should choose a HIP provider who subscribes to the HIPcode. The HIP Code is owned and maintained by the Association of Home Information Pack Providers (AHIPP). The Property Codes Compliance Board maintains a register of all HIP providers who subscribe to the HIP Code. You can check whether a HIP provider subscribes to the Code by contacting the Property Codes Compliance Board at www.propertycodes.org.uk. The requirements of the HIP Code include:
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