home information pack (hip)
With a few exceptions it is now mandatory for all property being newly marketed in England and Wales to have a Home Information Pack or HIP as they are often referred to.
HIPs include:
- A Home Condition Report (HCR)
- Additional leasehold, information
- Guarantees and warranties
- Other searches relevant to the particular area
Who compiles HIPs?
Sellers can hire estate agents, solicitors, separate pack providers, or do it themselves. Location360 offer a range of options to suit your own requirements. Location360 are Independent. This means we can get a HIP on terms that suits you best.
Are HIPs required across the UK?
No - only in England and Wales.
I'm selling my house privately - do I need a Home Information Pack?
If you are marketing your property, even if it's just by putting a 'for sale' sign in the window, you need a Pack. Sales where no marketing takes place (e.g. to a member of the family) won't need a Pack. If you are selling through Location360 your HIP can be arranged on a no sale no fee basis. BEWARE! No Sale no fee is distinctly different from deferred payment. Many well known national estate agents offer a deferred payment hip but very few offer a NO SALE NO FEE HIP. Deferred payment means that the payment is put off until you sell your property but if you do not sell your property you are then faced with a bill. On the other hand, NO SALE NO FEE means just that. If you do not sell your property then you do not pay for your HIP. To find out more call 0845 20 360 20.
Who pays for the Pack?
The seller is responsible for the cost of a Home Information Pack. The cost of the Pack is down to the market, but sellers will often be able to defer costs until late in the sale. Location360 can provide you with a range of options to suit your specific requirements including no sale no fee.
How will I pay for the Pack?
This depends on the agreement between the seller and the compiler of the Pack. Some examples of the ways that Packs might be paid for are as follows:
- Seller pays for the Pack upfront from estate agent, solicitor or Pack provider. Location360 can offer very favourable terms for this option.
- Seller compiles the Pack and pays each organisation for the relevant component (e.g. the Land Registry for the title document)
- Estate agent offers the Pack to the seller on a 'no sale, no fee' basis, where the cost of the Pack could be included in the estate agent's commission. Location360 offer favourable terms on this option.
- Estate agent offers the Pack to the seller on a 'buy now, pay on completion' basis, which is usually a credit agreement for three or six months between the seller and the organisation compiling the pack.
These are only indications of payment models; the Pack regulations do not prescribe any particular payment method.
Do I have to put electrical certificates in my Pack?
Electrical certificates (past or present) are not a required component of the Pack, but can be included if the seller has them.
I've lost guarantees of work I have had done - what do I do?
Don't worry - guarantees aren't a required component of the Pack, but can be included if you have them.
Should the pack include a Home Condition Report?
A Home Condition Report could help you sell your property more quickly if it shows that it is in good condition, or if it highlights any problems straight away for potential buyers, it can avoid nasty surprises for buyers later in the process.
My house has been on the market before HIPs came in. If I change Estate Agents now, do I have to get a HIP?
If your house has not been taken off the market i.e. continuous marketing has occurred, then no, you will not need to commission a HIP. If however, there was a break in marketing you will need to supply a HIP.
