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- What is a HIP?
What is a HIP?
- By Jenny Andrew
- Published 10/9/2008
- Real Estate
- Unrated
What Is A Home Information Pack?
Required documents must be included in the Hip where appropriate and authorised documents may be included at the seller’s discretion.
The required documents are:
- An index (i.e. a list of the contents of the Pack)
- A sale statement (summarising terms of sale)
- Evidence of title. Who owns the property?
- Standard searches (i.e. local authority enquiries.)
- Drainage and water search.
- An EPC
- Where appropriate, common hold information (including a copy of the common hold community statement)
- Where appropriate, leasehold information (including a copy of the lease, information on service charges and insurance)
The authorised documents include:
- Guarantees and warranties
- A Home Condition Report.
- Other searches.
An authorised document means that sellers can use them to top up their Home Information Pack voluntarily to include additional material where they judge that to be of interest to prospective buyers. Although Home Condition Reports are voluntary, the Government strongly believes that these are likely to prove valuable to both sellers and buyers, and is working with the industry to ensure that there is active take up.
Prior to the introduction of the Hips, one million pounds a day was wasted on failed transactions and buyers would often spend hundreds of pounds on valuations, legal advice and searches on transactions that ultimately broke down. By providing key information at the beginning of the process, Home Information Packs should speed up the process, prevent waste and significantly cut the number of sales that fall through.
The average home owner could save around £300 in fuel bills by making their home more energy efficient, and this information can be found within the EPC.
Our homes account for 27% of the UK’s carbon emissions contributing to global climate change.
Nearly 30% of transactions collapse after terms have been agreed.
Over 40% of transactions collapse because of an unfavourable survey or valuation inspection, so property condition is a major reason for failure.
Currently only 2% of buyers have a full structural survey carried out when buying a home.
Only 20% to 30% of buyers carry out a survey at all – that is 7 out of 10 people who do not.
