guide to HIPS when selling a property

Since 14 December, every property in England and Wales has required a Home Information Pack before it can be marketed. Our guide to HIPs when you're selling a property gets you up to speed on what goes into a HIP and how you can get one organised.

for saleWhat is a Home Information Pack?

A Home Information Pack is a set of documents which the Government introduced in an attempt to increase the speed of buying and selling, reduce the number of sales that fall through and improve the environment through energy-efficiency awareness.

When do you need to commission a Home Information Pack?

If you are selling a property in England and Wales after 14 December, you need to have commissioned a HIP before you can market your property. The HIP must contain at least the following information:

  • An index of contents
  • An Energy Performance Certificate (EPC)
  • A sale statement
  • Evidence of title (for registered and unregistered properties)
  • Searches
  • Leasehold/commonhold documents where appropriate.

You can also include other documents such as a Home Condition Report, an environment or flood risk search and other information that would be of interest to a potential buyer as defined in the regulations.

laptopWho pays for the HIP and what will it cost?

The seller is responsible for the cost of a Home Information Pack. This can be paid for at the time of commission, by a deferred payment scheme, or on completion of the sale. The cost will vary, depending on who carries out the HIP and the size of the property.

Who compiles HIPs?

There are a number of options open to you as a seller:

When commissioning a HIP, you should make sure it is prepared by a member of the HIP Code, which provides protection for homebuyers, sellers, estate agents, conveyancers and mortgage lenders. It sets out minimum standards which HIP providers have to meet. You can check whether a HIP provider subscribes to the Code by contacting the Property Codes Compliance Board.

Are there circumstances when a HIP won't be required to sell a property?

There are circumstances when a Home Information Pack is not required. These include:

  • Properties where there is no marketing (i.e. sale to a family member)
  • Non-residential properties
  • Seasonal and holiday accommodation
  • Mixed sales (i.e. shop with flat)
  • Right to buy and similar sales
  • Sales of portfolios of properties
  • Properties not being sold with completely vacant possession
  • Unsafe properties and properties to be demolished
  • New homes built under Part L of the Building Regulations 2006 (these will be brought in by a separate commencement order in due course).

The content provided in the Primelocation.com guides is for information only. In all cases, independent and professional advice should be sought before buying, selling, letting or renting property, or buying financial services products.

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