Introduction
Home Information Packs (HIPs) are as new concept as of 2007. They aim to bring together all the information needed during the sale / purchase of a home (i.e. property for residential purposes) so as to minimise cost and time of all parties involved.
Of course the new rules will take some getting used to and might not reduce costs or time in the first instance. This Net Lawman article is an introduction to how the packs work. We have many more articles on Home information packs. You can also buy and download a pack for use today.
The relevant Acts of Parliament and regulations associated with HIPs are;
Housing Act 2004; and
The Home Information Pack Regulations 2007
How do Home Information Packs apply to me? From 1 June 2007, if you are interested in buying a home in England and Wales you will be able to get free information about the properties you are interested in.
The Pack is designed to ensure that information needed by you – a potential buyer - is available when you need it, so that you can carefully consider whether or not to buy a property.
It will bring together key information needed by you, the buyer, and by sellers at the very start of the home-buying process. It will also ensure that important information about improving the energy efficiency of homes is made available every time a property is sold.
If any items are missing, there should be an explanation from the person marketing the property and an assurance that the missing items will be provided as soon as possible.
How do I get a Pack?
If you are truly interested in a property, you should ask whoever is advertising it for sale for the Home Information Pack. This is usually an estate agent, but could be another business or individual.
How much will it cost me?
If you’re a buyer, nothing: you’ll get a copy of the Home Information Pack free on any property you’re interested in. A reasonable charge may be made for copying and for posting the pack.
The new Energy Performance Certificate is a compulsory part of the Pack, and is paid for by the seller.
What do I do with the pack?
The Pack has to be available when the property is marketed – make sure you ask for it. When you get it, read it carefully, or ask your solicitor to look at it for you: it will tell you about the property’s energy efficiency, any issues that have come up in the local searches, and (if you have a Home Condition Report) anything you need to know about its condition.
When you have accepted an offer, make sure you give a copy of the Pack to your solicitor – this should save you time and money in the rest of the process.
What’s in a Pack?
You can read the Net Lawman article on “What’s in a pack?” which explains the contents of an HIP.
Briefly, your Pack will contain:
An Energy Performance Certificate;
An index of contents;
A sale statement (summarising terms of sale);
Evidence of title;
Searches;
Leasehold or common hold documents where appropriate.
If there are delays in obtaining them, some Packs may not include information on searches of the leasehold or common hold documents when marketing starts. They should be added as soon as they do become available.
The Pack may also include other information that would be of interest to buyers – for example, a Home Condition Report, other searches and guarantees and warranties.
Only items that are set out in regulations as either ‘required’ (compulsory) or ‘authorised’ (optional) may be included in the Pack. The regulations prohibit the inclusion of marketing or advertising material in the Pack, so make sure it includes only official material.
The Pack might also contain a legal summary, and answers to standard enquiries made of sellers.
What does the Energy Performance Certificate tell me?
The Energy Performance Certificate provides you with an energy efficiency rating. It will have useful advice on any improvements that can cut fuel bills and boost the energy efficiency of the property.
Is there a Home Condition Report in the Pack?
If your seller has commissioned one, a Home Condition Report will contain useful information on the property’s condition. These are currently voluntary, so there might not be one in your Pack.
Is there a legal summary?
Some Packs come with a legal summary, providing the most important information from its legal documents.
Are the searches and, for leasehold properties, the necessary leasehold documents included?
These items are not always easy to obtain quickly: at the moment, sellers have up to 28 days in which to get them for the Pack.
If by chance you find some error of law or fact in any Net Lawman information page, do please tell us. We should also welcome your suggestions for new subjects for information pages. These notes:
Do not provide a complete or authoritative statement of the law;
Do not constitute legal advice by Net Lawman;
Do not create a contractual relationship;
Do not form part of any other advice, whether paid or free.
