Understanding Home Information Packs (aka HIPs)

Home Information Pack (HIP), also referred to as the 'Seller's Pack', is a set of documents conveying information about any property owned by an individual in England and Wales.



This means that, if any owner intends to sell the property, then he/she has to produce the set of HIP documents relating to the property. Sale Statements, The Energy Performance Certificate, Local authority Searches, title documents, etc., are some of the most important HIP documents.



Home Information Packs were introduced to ensure that the transaction of property (homes) takes place without any hindrance and in a transparent way.



Earlier the Home Information Packs were not compulsory and so buyers and sellers had to engage in a series of negotiation before completing a transaction. Despite lengthy negotiations, reports of gazumping and mismanagement would surface and thus an atmosphere of suspicion would emerge both on the part of buyer and on the part of seller.



The buyer would complain that the seller knowingly suppressed crucial information to inflate the price of a property. In contrast, the sellers found difficult to calculate the actual value of the property in absence of relevant documents. It is estimated that the deals of homes, which could not be finalized may cost about £350 million annually.



The provisions of the Housing Act 2004 ensured that the property owners must furnish HIP for advertising a property. With the implementation of provision, the relation between the buyer and seller has changed and there has been a rise in the transaction.



Equipped with necessary information the seller can quote price in a much more confident way. Similarly, the buyer is well informed about the property and remains satisfied with the transaction. Mostly the buying and selling of homes have become an easy, speedy and transparent affair thanks to the introduction of HIP



The information rendered by Home Information Packs can be segmented into two parts - required and authorized. The 'required' or mandatory information includes Index, Energy Performance Certificate, Local Authority and Drainage Searches, Sale Statement/Terms of Sale and the title documents.



If you are contemplating to sell your property in England and Wales make sure that you have submitted all necessary document that comes under the purview of 'required' information. The owner of the home has to procure those necessary documents three months prior before advertising the property.



In case if the property is on leasehold, the Home Information Packs must include additional documents besides "required" information. Copy of the lease, building insurance policy, contact details for the property owner/management and legal details, recent service charge receipts and accounts as well as all applicable regulations comprises the additional information of the Home Information Packs.



The Home Information Packs may include some other authorized documents like Home Condition Report, Legal Summary & Other Search Reports (mining search reports in particular cases), two seller's questionnaire forms - the Home Use Form and Home Contents Form.



Find local Domestic Energy Assessors to supply an Energy Performance Certificate for your Home Information Pack at our Directory of DEA's at http://www.dealocal.co.uk