HIP - Frequently Asked Questions
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This can cause frustration and delay and may result in the terms being renegotiated or even the sale falling through altogether. Home Information Packs will ensure that all of the important information will be provided up front at the outset. It is hoped that this will create a faster and more efficient home buying system and the main benefit to the seller is that any buyer is less likely to pull out if they have all the required information from the very beginning.
A Home Information Pack will ensure that all the important information is provided up front, giving peace of mind to both you and your buyer, creating a smoother, faster path to a successful sale.
The mandatory documents include the following:
The Energy Performance Certificate will be prepared by Domestic Energy Assessors or Home Inspectors who are members of a Government approved certification scheme. It has been designed to help home owners save on energy bills and reduce the environmental impact of their properties. It is estimated that by following the recommendations in an EPC, an average of £300 a year could be saved in fuel bills.
- Home Information Packs (HIPs)
- Energy Performance Certificates (EPC)
- Home Condition Reports (HCR)
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...and many more.
Q. What is a Home Information Pack (HIP)?
A. It is now compulsory for homeowners to arrange for a Home Information Pack to be prepared before putting their home up for sale. Under the ‘old’ system most of the information that will be included in the pack is only produced after an offer has been made and accepted so if there are any problems these only come to light several weeks later, by which time the parties may have incurred legal and survey fees, search fees etc.This can cause frustration and delay and may result in the terms being renegotiated or even the sale falling through altogether. Home Information Packs will ensure that all of the important information will be provided up front at the outset. It is hoped that this will create a faster and more efficient home buying system and the main benefit to the seller is that any buyer is less likely to pull out if they have all the required information from the very beginning.
Q. How does a Home Information Pack benefit the buyer and seller?
A. Previously, most of the information a buyer required was only produced after an offer had been made and accepted. This meant any problems only came to light after the parties had incurred legal, survey and search fees, and resulted in sales falling through several weeks after the offer was accepted.A Home Information Pack will ensure that all the important information is provided up front, giving peace of mind to both you and your buyer, creating a smoother, faster path to a successful sale.
Q. If my home is already on the market will I still need a HIP?
A. If a house was put on the market prior to the date of the introduction of the HIP for their particular property size, then the property will not require a HIP. If the vendor decides to take the property off the market and then puts it back on again, then the property will need a HIP. It is proposed that eventually all properties on the market will require a HIP, regardless of when the period of marketing began, but the date for this has not yet been decided by the Government.Q. What does a HIP include?
A. The Home Information Packs will include the key documents that are normally required when properties are bought and sold. Some documents will be mandatory and others optional.The mandatory documents include the following:
- An index of contents
- A sales statement (summarising the sales details)
- Proof of ownership
- Local property searches
- An Energy Performance Certificate
- Common hold and leasehold information if appropriate
- A Home Condition Report
- Guarantees and warranties
- Other searches relevant to any particular area
Q. What is an Energy Performance Certificate?
A. The Government is committed to comply with EU Directive 2002/91/EC, which aims to promote improvements in the energy performance of buildings. The EU Directive requires and Energy Performance Certificate for all dwellings at the time of sale. Energy Performance Certificates will tell property buyers and sellers about a property’s energy efficiency using A-G ratings, like that used to rate a fridge or washing machine. The certificate will also make recommendations for cost effective improvements that can be made to help cut fuel bills.The Energy Performance Certificate will be prepared by Domestic Energy Assessors or Home Inspectors who are members of a Government approved certification scheme. It has been designed to help home owners save on energy bills and reduce the environmental impact of their properties. It is estimated that by following the recommendations in an EPC, an average of £300 a year could be saved in fuel bills.
Q. What is a Home Condition Report (HCR)?
A. The optional Home Condition Report provides information about the condition the home is in (similar to a survey) and includes an Energy Performance Certificate. The Home Condition Report would let the seller and buyer know if any repairs are needed before the buyer makes a decision as to whether the property is suitable.Q. Will there be a delay in selling my property due to the requirement to arrange a HIP?
A. Currently your estate agent will need written confirmation from your pack provider that the HIP has been ordered. It does not have to be completed before marketing can commence. However to avoid any delays you would need to ensure that your pack provider receives the order and payment promptly to avoid delays. Until that written confirmation is received, your agent will not be able to take any steps at all to start the marketing process.At a later date the estate agent will need to have actually received the Pack before marketing can begin.
