The Home Information Pack
Since 14th December 2007, every home put on the market, no matter what size, must have a Home Information Pack. This brings together key information needed by buyers and sellers at the very start of the buying and selling process. It also ensures that important information about improving the energy efficiency of homes is made available every time a property is sold.What is a Home Information Pack (HIP)?
A HIP is a bound document containing almost everything a buyer/lender’s solicitor will require in order to exchange contracts on the purchase of a property. This includes the terms of sale, evidence of title, standard local authority and water searches, planning consents and either a Home Condition Report or an Energy Performance Certificate. It can also include warranties for fixed appliances, guarantees for any work that has been carried out and any other relevant searches for example, a coalmining report.How long is the HIP valid for?
A HIP is valid for as long as the property remains on the market. The original HIP may also be used if the property is withdrawn from the market and subsequently remarketed within one year of the original date of marketing. If the property is remarketed after one year from the original date of marketing then a new HIP will be required. As the vendor, you are under no obligation to renew any element of the HIP although you might choose to if your house has been on the market for more than six months.Who organises the HIP?
Whilst anyone can arrange a HIP using a conveyancer, most sellers will organise this through their estate agent who should have a relationship with one or more of a number of recognised HIP providers. All you have to do is sign the application form (although some providers do this over the phone) and provide certain details, such as your conveyancer, local authority and mortgagor. The HIP provider will collate the pack on your behalf.The person responsible for marketing a property (in most cases, the estate agent) must have commissioned a Home Information Pack by the time the property is on the market. As soon as you have received the Energy Performance Certificate (a compulsory part of the Pack), you must produce a Pack and provide potential buyers with a copy of the Pack, or any document from it, on request. In most cases, this period is 14 days after the date of the request. You must not charge for the Pack itself, but you may make a reasonable charge for copying and posting a Home Information Pack.
What is an Energy Performance Certificate (EPC)?
The Energy Performance Certificate (EPC) forms part of the Home Information Pack. Since 1st October 2008, an Energy Performance Certificate has been required by law when a building is constructed, sold or put up for rent. They were introduced to help improve the energy efficiency of buildings.The certificate provides a rating of the energy efficiency and carbon emissions of a building from A to G, where A is very efficient and G is very inefficient. An EPC will be accompanied by recommendations on how energy efficiency can be improved and what rating could be achieved if all the recommendations were implemented. When a property is put up for sale, the EPC must be no more than 12 months old. An EPC can only be issued by a licensed Domestic Energy Assessor (DEA). The cost of the EPC should be included in the cost of the HIP.
Do I have to commission a Home Condition Report (HCR)?
A Home Condition Report (HCR) is a form of survey. Whilst not aiming to replace a full structural survey conducted by a RICS qualified Chartered Surveyor, an HCR gives prospective purchasers a good idea of the overall condition of a property with consistent and easily understood 1,2 or 3 grade ratings on the most common aspects of condition, such as roof, gutters, windowsills, timbers, damp proofing, etc. Most purchasers will find this information sufficient enough to be able to make an informed offer. An HCR also gives the vendor an opportunity of addressing, in advance, any issue that might otherwise deter a purchaser. An HCR is voluntary.How much does a HIP cost?
Charges vary from supplier to supplier and agent to agent. Some agents will include the (undisclosed) cost of the HIP in their fees, whilst others, such as ourselves, charge separately, which we believe is much more transparent. Where you pay for the HIP, i.e. the latter route, you own it – not the agent!The cost of a HIP for the average home is typically in the region of £250 plus VAT for a basic HIP with an EPC, to £600 plus VAT for a leasehold property with a Home Condition Report. You, as the seller, are liable for payment so do make sure you are serious about selling if you wish to avoid unnecessary charges and do read the conditions attached to any HIP application. Rest assured, Edison Ford will be able to advise you on your options with regards to a HIP when you meet with one of our representatives. We constantly monitor the market place to ensure that we can offer you a competitive solution to your HIP requirements.