What goes in a HIP?
The following compulsory documents must be included in a Home Information Pack:
- Home Information Pack Index
- Energy Performance Certificate (EPC)
- Sale statement
- Standard searches (Local Authority and Water & Drainage)
- Evidence of title (i.e. your legal ownership of the property)
- Additional information for leasehold and commonhold sales, where appropriate.
You can also include other documents such as a Home Condition Report, an environmental or flood risk search and other information that would be of interest to a potential buyer as defined in the Regulations but these are not compulsory.
How long does a Pack last for?
While the property is on the market, there is no need to update the Home Information Pack (ultimately, the market decides whether the documents remain acceptable and up to date).
If the sale of your property stops and then starts again, you would normally be required to assemble a new Pack and to update those documents which are now out of date according to the requirements of the Home Information Pack Regulations. However, you can carry on using the same Pack without the need to update any of the documents in the following circumstances:
- Where marketing stopped because you accepted an offer and want to restart marketing because the sale has fallen through, provided that remarketing starts within one year of the date when marketing first began or, if later, within 28 days of the sale falling through.
- Where marketing has stopped for any other reason, you may remarket the property with the same Pack provided that remarketing starts within one year of the date when marketing first began.
Are you worried about the time it will take to produce a HIP?
The Law Society has always argued that the need to provide a HIP before you can market your property could cause delays and frustration for sellers.
Fortunately, the government now seems to have agreed - until the end of June 2008 you can market your property as soon as you have commissioned a pack – rather than waiting until you have received it.
The Law Society HIP (assembled by MDA) we have chosen to use is based on an easy-to-use, web-based system which has been developed to reduce the potential for delays. The system also allows us to track the progress of the searches and any other documents required, along with the next steps in the HIP assembly process.
MDA is a leading electronic search provider and has years of expertise and experience in the property sector. Searches are a key component of a HIP. To be successful a HIP must be consistently delivered on-time and contain accurate information – therefore it is vital that the HIP you choose is underpinned by a reliable and trustworthy source of search information.
A key benefit of the Law Society HIP lies in its compliance with the Regulations and its flexibility - avoiding duplication of time and effort and dovetailing with the entire conveyancing process.
How do I get an Energy Performance Certificate (EPC) and voluntary Home Condition Report (HCR)?
The Law Society HIP provides direct access to an ever-growing number of Domestic Energy Assessors (to provide the compulsory Energy Performance Certificate) and Home Inspectors (to provide the voluntary Home Condition Report) throughout England and Wales.
We choose from a drop-down menu within the Law Society’s HIP system, and the relevant inspector is assigned to complete either the EPC or the HCR. We are committed to instructing local Domestic Energy Assessors whenever possible. Of course, should our supplier/s find themselves unavailable for that particular property or unable to complete the inspection within the timeframe you require, we can choose an alternative supplier from the list of MDA approved list.
As local solicitors we are not only best placed to advise on the legal content of your HIP, but we may also be able to provide you with input on other issues affecting the property being sold.
What of the impact a poorly prepared HIP can have on a sale’s completion, not to mention the estate agent’s reputation?
The Law Society has produced a HIP service that is compliant with HIP legislation.
As the representative body of over 116,000 solicitors in England and Wales, who could be better placed to understand the needs of conveyancing solicitors and how they work.
This knowledge has been put to use in producing a fully compliant pack that not only meets our needs, those of the estate agent and of course, your needs, but that has also been designed with the needs of the buyer’s solicitor in mind. After all, if the buyer’s solicitor does not accept the HIP, delays could be incurred at the time of completion if you need to provide missing documents or searches, potentially jeopardising the transaction.
How much does the Law Society HIP cost?
The cost of each individual HIP will vary – the final price will depend on the components selected for inclusion in the pack, and the cost of local searches and the EPC.
A deferred payment option is available from MDA. If you would like more information about this please let me know.
Does the Law Society HIP system allow estate agents to interact with the process simply and efficiently?
Estate agents will be able to log in to the Law Society HIP website, and track the status of each HIP. The system is very easy to use.
Will the Law Society HIP be available in a variety of formats?
Estate agents will be able to choose, with their clients, the number of copies of the particular HIP they need, and in which format to suit their marketing requirements - hard copies, on CD, or online.
Will your HIP provider take care of archiving and government database registrations?
MDA will archive a copy of the HIP for six years, just in case a copy is requested at a later date. All relevant items will automatically be registered with the appropriate government databases.
