Guide to Home Information Packs

A brief guide to Home Information Packs.

What is a Home Information Pack?

A home information pack is a legally required collection of documents, which aim to provide prospective buyers with basic information on the property. This is set out in a standardised, easy to understand format. Estate Agents can’t put a property on the market until the basic documents of the home information pack are in place.

Why do I need a Home Information Pack?

The 2004 Housing Act was perhaps the biggest change to the legal framework regarding property sales in England in the past century. The primary aim of this Act was to reduce the number of failed property transactions. These failed transactions cost the English public around £350 million in abortive legal fees alone per year. Not to mention unquantifiable levels of stress!

The home information pack was the key device introduced by the Act to achieve these aims. As such, the Act requires that all domestic properties marketed for sale, must be marketed, from the outset, with a home information pack.

The home information pack is also used as a vehicle to deliver the Energy Performance Certificate, which is a European instrument used to provide prospective buyers with information regarding the energy efficiency, running costs, etc of the property, and assists the buyer with making an informed decision.

What is included in a Home Information Pack?

A home information pack is made up of a variety of documents:

-An index
This simply lists the contents of the HIP, and informs the prospective buyer of any additional documents included in the HIP, alongside any notes that may be required.

-A Property Information Questionnaire
This is a relatively simple questionnaire, filled out by the vendor of the property. The questions relate to the nature of the property, which services are connected to the property, whether the property has been subject to any damage, and any leasehold information if applicable.

-An Energy Performance Certificate
This is a report put together by a qualified energy assessor, who carries out a survey on the property. This document contains information regarding the energy efficiency of the property, potential running costs, and even suggestions on how the the efficiency of the property may be improved.

-A Sales Statement
This sets out the nature of the sale, whether the property is being sold by the owner, or whether it is being sold by a representative acting on behalf of the owner or their estate.

-Evidence of Title
This normally is made up of multiple documents, depending on the legal nature of the property. In the case of registered, freehold properties, this will include the title plan from Land Registry, as well as the relevant land Register office copy entry. In the case of leasehold properties, this must contain the relevant leasehold title information, as well as a copy of the lease itself.

Unregistered properties require alternative documents of title. This generally comes in the form of an Epitome of Title, normally prepared by the vendor’s solicitor. The epitome contains a variety of conveyance documents, allowing the prospective buyer to track title of the property over time, and to determine current title.

-Local Searches
The HIP will also contain Search reports/Certificates. The two most important searches are the CON29D drainage and water searches, and the LLC local Authority searches. The drainage and water search is obtained from the relevant water authority, and provides information regarding the drainage systems present in the area, and the mineral content of the water. The LLC Search is obtained from the relevant Local Authority, and includes details of any relevant land charges, compulsory purchase orders, tree protection orders, etc.

-A Legal Summary
This sets out the legal nature of the property being sold, whether it is freehold, leasehold or commonhold, registered or unregistered, and also contains any relevant leasehold information.

What can we offer you as a specialist HIP provider?

-We will order your searches.
-We will source title documents.
-We will instruct the Energy Assessor
-We will put together these documents in an easy to read, exchange ready, fully compliant HIP pack.

Aren’t HIPs just a waste of time and money?

The short answer is a resounding “no”. it is only right that buyers have all relevant information available to them before they can make an informed decision to purchase. For many, purchasing property is perhaps the most important decisions that they will make in their lifetime, and it also must be taken into consideration that the majority of those selling property, will also be buying property as well, so they will also be able to appreciate the benefits of an exchange ready HIP. Furthermore, in these times, as more and more individuals become concerned with energy and sustainability issues, the HIP can become a powerful marketing tool for the Estate Agent.