Due to a lack of accredited Domestic Energy Assessors, the Royal Institute of Chartered Surveyors brought an action against the Government for Judicial Review of the consultation process leading up to the introduction of HIPs. A judge decided that the Energy Performance Certificate should be omitted from HIPs 'for the time being'. This stopped the Government from introducing packs on 1 June 2007 as planned. Their introduction was postponed until August 1 for properties having four or more bedrooms with a phased introduction for properties with less bedrooms thereafter. Three bedroomed properties required a HIP when marketed on or after 10 September 2007. HIPs are required for one and two-bedroomed properties from 14 December 2007.

2.  When do I have to have a pack?

There is a transitional provision which allows property marketing to commence when the pack has been commissioned, that is, ordered rather than actually compiled.

3.  Which documents have to be included in a Home Information Pack?

The ‘required’ therefore mandatory documents are: -

         a. An index of documents in the pack;
         b. Energy Performance Certificate (EPC) detailing the energy efficiency of your home;
         c. A sale statement including the address, postcode and details of the property being sold;
         d. Land Registry documents if the property is registered or other evidence of title;
         e. A copy of the Lease or Commonhold Community Statement for leasehold or commonhold properties;
         f. A local authority search;
         g. A water and drainage search.

        The ‘authorised’ therefore optional documents include: -

         h. A summary or explanation of any HIP document;
         i. Home Contents and Home Use forms or the Law Society's version of those documents;
         j. Information to identify the property e.g. map photo or drawing;
         k. Supplementary Land Registry documents;
         l. Any warranties, policies or guarantees relating to construction, defects or repairs;
         m. Additional search reports;
         n. Other documents of interest to a buyer.

4.  Who has to pay for the pack to be compiled?

It is the seller’s responsibility to pay for the compilation of a Home Information Pack. We are producing a legally-compliant pack for £299.00 plus VAT for a freehold property. There may be a modest extra cost incurred in relation to leasehold property if a copy of the lease has to be sought from the Land Registry. If you want to order a fuller pack that contains 'authorised' documents which may make the pack more useful during the conveyancing process; this type of pack will cost £600.00 plus VAT. Where third parties charge for provision of additional documents, this cost will be added to the cost of the pack.

4.  Do I have a say in who gets to see all of this information about my property?

The legislation does not entitle anyone and everyone to receive a copy of the HIP relating to your property. If you or your agent reasonably believe that a potential buyer –

        a. is unlikely to have sufficient funds to buy your property; or
        b. is not genuinely interested in buying a property of the general description which applies to your property; or
        c. is not a person to whom you are likely to be prepared to sell your property; 
        d. it is lawful to refuse to supply the HIP without explanation. Nothing in the above provision authorises any act of discrimination.

Questions and Answers for Buyers*

1.  How will I get a copy of the Home Information Pack for a property I’m interested in?

The government expects that a copy of a HIP should be made available to interested parties electronically as well as on paper. If you agree to see an electronic copy, this can be done online. A paper copy will be printed and forwarded to you. The legislation makes provision for potential buyers to be asked to pay for copying and postal charges in connection with receipt of a paper copy of a HIP. We will charge £25.00 plus VAT for provision of a paper copy.

2.  Can I compel the seller to include information in the Home Information Pack about the condition of the property?

The HIP will include the required Energy Performance Certificate (EPC) which will have to be compiled by a qualified person. The production of the EPC depends on the collection of data from the property and applying the calculation tools approved by the Building Research Establishment and the Department for the Environment, Food and Rural Affairs (DEFRA). It is optional for a seller to include a Home Condition Report (HCR) which comprises information about condition. It is possible, though unlikely, that sellers will opt to include an HCR which incorporates the EPC.
 
3.  If a voluntary Home Condition Report is included in the HIP on the property I’m buying, will this be good enough for my mortgage lender?

The introduction of Home Information Packs does not change the general provision of ‘caveat emptor’ or in other words ‘buyer beware’. Lenders will commission their own valuation/survey reports and buyers will still be advised to arrange a full structural survey of property they plan to purchase.

4. Will I have to obtain any other documents or will the HIP be comprehensive?

The seller will not be responsible for keeping the pack up to date. Therefore, depending how long the property has been on the market, you may have to instruct your solicitor to repeat some searches or investigate matters not fully explained by the version of the HIP supplied by the seller.

5.  What happens if all of this documentation can’t be got together for some reason? Does it mean I can’t sell my property?!

No. The legislation contains provisions relating to provision of incomplete packs provided that ‘all reasonable efforts and enquiries’ have been made to obtain required documents.

* Responses based on the Home Information Pack Regulations (No2) 2007.

Contact our HIPS Advisor for further information.