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Tuesday, 18 January 2011

HIPs: a seller's guide

Home Information Packs have been suspended

Please note that the Home Information Pack duties are suspended with immediate effect from 21 May 2010. This means that homes marketed for sale on or after this date will no longer need a Home Information Pack. However, Energy Performance Certificates are still required.

For more information please follow the link below.

Why you need a HIP

It is a legal requirement to have a HIP and you can't market your property without one. The HIP lets buyers see important information on the property at the start of the process, free of charge.

This means there's less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.

You don’t need a HIP for:

  • properties where there is no marketing, for example if you are selling to a member of your family
  • non-residential properties
  • properties limited by law to use as holiday accommodation or occupation for less than 11 months per year
  • mixed sales, for example a shop with flat
  • sales of portfolios of properties, for example selling two properties together
  • properties not being sold with completely vacant possession, for example with a sitting tenant
  • unsafe properties and properties due to be demolished
  • properties sold through the ‘Right to Buy’, ‘Right to Acquire’ and ‘Social HomeBuy’ home ownership schemes

See ‘Low cost homeownership schemes – an introduction’ for more information about the Right to Buy, Right to Acquire and Social HomeBuy schemes.

New builds

You need to provide a HIP for newly built properties. For details of what needs to be provided for a newly built property, follow the link below.

What is in a HIP

The HIP is made up of required (compulsory) and authorised (optional) items.
There shouldn't be any marketing or advertising material in the pack, so make sure it contains official information only.

From 6 April 2009, the HIP must be available and contain the following documents on the first day a property is put on the market:

  • Home Information Pack Index
  • Property Information Questionnaire (PIQ)
  • Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
  • sustainability information (required for newly built homes)
  • sale statement
  • evidence of title

If the following documents are unavailable when marketing begins, they should be added to the HIP as soon as they are available. These documents must be included within 28 days of the date the property was first placed on the market:

  • standard searches (local authority and drainage and water)
  • a copy of the lease for leasehold properties
  • commonhold documents, where appropriate

For more detailed information on the compulsory and optional documents and how to get them, follow the links below.

Where you can get a HIP

If you need to get a HIP, you can choose any of the following options:

  • get an estate agent to do it
  • use a solicitor or a licensed conveyancer
  • use a specialist HIP provider
  • compile it yourself

Finding a HIP provider

If you are commissioning a HIP, you should shop around as prices vary, and check the terms and conditions of your contract. You should always make sure that your HIP provider is signed up to a code of practice, like the HIP Code.

More about HIPs for sellers

Follow the links below for more information about HIPs, including how much they cost, ways to pay for them, how long they last, and what they look like.

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