HIPS

Property Search

HIPs (HOME INFORMATION PACKS)

WHAT IS A HIP? Home Information Packs (also known as "Sellers Packs") have now been implemented by the government. A HIP is now required for the sale of any residential properties which are new to the market.

From last year, it has been illegal to put a residential property on the market without first having prepared or at least commissioned a HIP (subject to certain exemptions such as the sale of investment portfolios, etc.). Failure to do so is an offence punishable with a £200 per day fine and enforced by Trading Standards. The ability to market your property from "Day One" will remain until June 2008, from which time a HIP will be required BEFORE we can advertise your property.

Providing a HIP at the start of a sale may reduce the likelihood of any nasty surprises in the selling process that could delay the sale as information about the property will be available much sooner in than was usually the case. Whilst there is ongoing debate about the merits of this system, the legislation is now in place and we are committed to making it work for you.

HIP CONTENTS The pack will contain at least the following:-

An index of contents
An Energy Performance Certificate (EPC) - A report indicating the relative energy efficiency of the property on a scale of A-G. This will be prepared by a qualified Energy Assessor who will have to visit the property.
A sale statement - this summarises the terms of the sale
Evidence of title - documents or copies confirming that the seller is the owner and has good title to the Freehold or Leasehold of the property
Local Land & Charges Search
Drainage & Water Search

For Leasehold properties, additional information such as a copy of the lease, management company information, receipts for Ground Rent/Service Charges and so forth will also be included. This may lead to delay in some cases, unless Freeholders/Managing Agents are efficient in providing replies.

WHEN MUST THE HIP BE PREPARED? In all cases, before the property is put on the market the HIP must be prepared or at least commissioned from a HIP provider. It is the Sellers responsibility to do this and because of the legal content it is advisable that you ask us (or your solicitor) to assist you in order to minimise delay and inconvenience as well as to ensure compliance with the law.

HOW DO I GET A HIP & WHAT IS THE COST? We can arrange a HIP for you as part of our service. The approximate cost of a HIP for a Freehold property is in the region of £300 + VAT. The cost for a Leasehold property is slightly more at around £325 + VAT and any charges made for the provision of information by your Freeholder or Managing Agent will have to be added to this. The cost may vary slightly because the most significant element, the search fees, are set by individual Local Authorities.

At Hinton & Bloxham you will be offered a range of options with complete transparency. We do not see this as an opportunity to make money and are working hard to maintain consumer choice and limit your expenses. We can arrange a HIP for you though the best approved HIP providers or suggest Local Solicitors who can also carry out this work on your behalf. If required, certain HIP providers are offering credit options to defer or spread the cost.

May we suggest that you treat with caution any estate agents offer to absorb the cost of the HIP within their fee as inevitably this will be extracted from you somehow and potentially not at the lowest cost available. You may also find that "your" HIP is in fact "their" HIP and not yours to take with you should you need to change estate agents at a later date ....

HOW WILL BUYERS SEE YOUR HIP? We will hold both electronic and hard copies of your HIP for inspection by prospective buyers.

HOW LONG DOES A HIP LAST? For as long as the searches are valid, i.e. six months.

RECOMMENDATIONS Please contact your Local Office for the latest recommendations for HIP provision.