What is in the HIP?
The Home Information Pack Regulations 2006 set out provisions on the “required” and “authorised” content of the Pack. Required documents must be included in the pack where appropriate and authorised documents may be included at the seller’s discretion.
The required documents are:
- An index (i.e. a list of the contents of the Pack)
- Property Information Questionnaire
- A sale statement (summarising terms of sale)
- Evidence of title. Who owns the property?
- Standard searches (i.e. local authority enquiries.)
- Drainage and water search.
- An EPC
- Where appropriate, common hold information (including a copy of the common hold community statement)
- Where appropriate, leasehold information (including a copy of the lease, information on service charges and insurance)
The authorised documents include:
- Guarantees and warranties
- A Home Condition Report.
- Other searches.
An authorised document means that sellers can use them to top up their Home Information Packs voluntarily to include additional material where they judge that to be of interest to prospective buyers. Although Home Condition Reports are voluntary, the Government strongly believes that these are likely to prove valuable to both sellers and buyers, and is working with the industry to ensure that there is active take up.
What are the benefits of the HIP?
Prior to the introduction of the Home Information Packs, one million pounds a day was wasted on failed transactions and buyers would often spend hundreds of pounds on valuations, legal advice and searches on transactions that ultimately broke down. By providing key information at the beginning of the process, Home Information Packs should speed up the process, prevent waste and significantly cut the number of sales that fall through.
The average home owner could save around £300 in fuel bills by making their home more energy efficient, and this information can be found within the EPC.
Our homes account for 27% of the UK’s carbon emissions contributing to global climate change.
Nearly 30% of transactions collapse after terms have been agreed.
Over 40% of transactions collapse because of an unfavourable survey or valuation inspection, so property condition is a major reason for failure.
Currently only 2% of buyers have a full structural survey carried out when buying a home.
Only 20% to 30% of buyers carry out a survey at all – that is 7 out of 10 people who do not.
What is an Energy Performance Certificate (EPC)?
The government is committed to complying with EU Directive 2002/91/EC which aims to promote improvements in the energy performance of buildings.
The EU directive requires an EPC for all dwellings at the time of sale.
The certificate will give prospective purchasers an easy to read guide to the likely energy costs of occupying the property in a similar way that current ‘white goods’ have an efficiency label.
I am a Solicitor/Estate Agent how will HIPVIEW benefit me?
As a solicitor you can set up an account with HIPVIEW and order the Home Information Packs quickly and simply online. You will receive a confirmation email with a reference number on to enable quick access to your HIP. You can track and view the process of the contents online and allow anyone you chose to do the same rather than having to show them in your office or produce a hard copy. You are also able to upload any further documents to the web site from your own PC. You will receive a statement for all your HIPS at the end of the month which hopefully will aid your accounts department and cash flow.
I am a Domestic Energy Assessor/Home Inspector how will HIPVIEW benefit me?
As a Domestic Energy Assessor/Home Inspector you can in effect become a Home Information Pack Provider with Hipview. We will supply any parts of the Home Information Pack you request, and you can supply the rest e.g. upload your own EPC to Hipview with us supplying everything else. Your client can then access the Home Information Pack either through Hipview or through your own website with our ‘Iframe’ link we have set up. Once you set your self up as a Home Information Pack Provider there will hopefully be more opportunities for marketing and sales from just EPCs alone.
I am a member of the public wishing to sell my property. How will HIPVIEW benefit me?
As a member of the public you will be able to order and pay for you HIP online. Finance packages will be available if you do not wish to pay up front. Anyone who wishes to view your HIP can then do so online in the comfort of their own home or any computer terminal with internet access. If they are then interested they can contact you or your estate agent, who ever you prefer, to arrange a viewing via the contact details that will be displayed with the HIP.
I am a member of the public wishing to buy a property. How will HIPs benefit me?
As a member of the public you are able to order and pay for you Hip online. Finance packages are also available if you do not wish to pay up front. Anyone who wishes to view their HIP can then do so online in the comfort of their own home or any computer terminal with internet access. If they are then interested they can contact you or your estate agent, who ever you prefer, to arrange a viewing via the contact details that will be displayed with the HIP.