What's in a HIP?
The HIP brings together key information needed by buyers and sellers at the very start of the home-buying process, and must contain at least the following documents;
- An Index of contents
The Index lists the documents contained in the Pack and provides a checklist for sellers, buyers, estate agents and solicitors. Where a document that must be included in the Pack is unavailable, the Index must say so, give the reason it is missing, and indicate what steps are being taken to obtain it. Where documents are added to or removed from the Pack at a later stage, the Index should be revised accordingly.
- An Energy Performance Certificate
The Energy Performance Certificate tells you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A. The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions. The average property in the UK is in bands D-E for both ratings. The Certificate includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment.
- A Sale Statement
The Sale Statement provides some basic information about the property, including:
- The address of the property being sold.
- Whether the property is freehold, leasehold or commonhold.
- Whether the property is registered with Land Registry or not.
- Whether or not the property is being sold with vacant possession.
These documents prove that the seller owns the property and therefore has the right to sell it.
Where the property being sold is registered, the Land Registry title documents must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:
- Official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register).
- An official copy of the title plan.
In the case of the sale of a commonhold interest, official copies of the register and title plan should be produced for both the unit and common parts.
For sales of unregistered land, the Pack must include copies of a certificate of an official search of the Land Registry index map, and those documents that the seller intends to rely on to provide evidence of title to the property, and thus the right to sell it.
The Property Information Questionaires is provided by the vendor and includes relevent information about the property, including:
- Details of any structural changes made to the property.
- Leasehold information when relevant.
- Council Tax banding.
- Services connected to the property.
The Home Information Pack must include:
- A copy of the local land charges register relating to the property being sold.
- Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack regulations.
- The provision of drainage and water services to the property. The local water company or a Personal search company can provide this.
Of the required leasehold documents only a copy of the Lease is compulsory, however, sellers should include other leasehold documents whenever available and the following are authorised for inclusion in the Home Information Packs.
- Any regulations or rules that apply to the property that aren't mentioned in the lease and any proposed amendments to same.
- Statements or summaries of service charges covering the previous 36 months.
- Where appropriate, the most recent requests for payment of service charges, ground rent, insurance against damage for the building in which the property is situated, and insurance in respect of personal injury caused by or within the building during the 12-month period before marketing began
- The name and address of the current or proposed lessor, and details of any managing agent that has been appointed or proposed by the lessor to manage the property.
- A summary of any works being undertaken or proposed that will affect the property or the building in which it's situated.
The required commonhold documents are:
- An official copy of the individual register and title plan for the common parts. This is in addition to official copies for the unit part.
- An official copy of the commonhold community statement from the Land Registry.
Where they are reasonably obtainable, or sellers can reasonably be expected to be aware of them, the following documents and information are also required:
- Copies of any regulations or rules not described in the commonhold community statement and any amendments proposed to those regulations or to the commonhold community statement.
- Copies of any requests for payments made in the previous 12 months in respect of commonhold assessment, reserve fund levy and insurance (if not covered by a request for commonhold assessment).
- The name and address of any managing agent or other person appointed or proposed to be appointed by the commonhold association to manage the commonhold
- A summary of current or proposed works affecting the commonhold.
