What is a HIP?
A HIP is a collection of documents containing information that buyers and sellers need to know about the property following a recent change in the laws governing the sale of properties.
Do I need a HIP?
All residential properties in England and Wales which were placed on the market since the 14th December 2007 need to have a HIP.
However, if your property was marketed before the following dates you do not require a HIP:
- 4+ bedroom properties from the 1st August 2007
- 3 bedroom properties from the 10th September 2007
- all other properties from the 14th December 2007
In addition, your property may be exempt from requiring a HIP if it is:
- A sale where no marketing is involved
- A non-residential property
- Seasonal and holiday accommodation
- A mixed property sale (e.g. shop with residential flat)
- A right to buy or similar sale
- A sale of a portfolio of properties
- A property not being sold with vacant possession
- An unsafe property or a property to be demolished.
- A new home built under Part L of the Building Regulations 2006 (These will be brought in by a separate commencement order in due course)
What is in a HIP?
The Index is the list of the documents included within the HIP together with the dates upon which they were obtained.
The Energy Performance Certificate (EPC) shows the energy efficiency of the property on a scale of A-G, much like the grading of a washing machine. The average property in the UK is within bands D-E for both ratings. The EPC also gives advice on ways to improve the property's energy efficiency in order to help save you money and look after the environment.
The Sale Statement gives a summary of the terms of sale, such as the type of property.
The Evidence of Title is an official copy of the register which sets out the restrictions and other matters which affect the property together with an official plan showing edged red the boundaries of the property.
The Local Authority Search identifies the status of the property within the Local Council records and shows any proposed plans which may affect the property such as the building of roads and railways within 250 metres of the property.
The Water & Drainage Search gives details of the water and sewerage services on and around the property, usually including routes of the pipe work.
The Lease must be included in the HIP if your property is Leasehold.
Why have HIPs been introduced?
The Government has introduced HIPs to better inform purchasers about a property they wish to buy which in turn is believed to reduce the stress of selling and buying a property, by highlighting any potential problems early in the transaction. The Government believe this should reduce the number of failed transactions and speed up the process of selling/buying a property.
Why choose us to produce your HIP?
As already advised, the HIP is a collection of documents which will be relied upon by purchasers and their solicitors. By asking a solicitor to prepare your HIP you can have confidence that it fully complies with all new laws and regulations introduced by the Government.
At Carter Read & Dove we are familiar with all aspects of property law and can advise you on the legal aspects of your HIP. Whilst we supply a standard HIP with all of the compulsory documents, there may be other documents which should be included in order to increase the speed of the sale of your property, such as additional searches or title (ownership) documentation.
We believe that our HIP is produced at a competive price, but most importantly correctly. In addition, when the HIP has been created it belongs to you as the client, as opposed to belonging to, for example, a solicitor or an estate agent. There are no exit fees or additonal costs if you wish to take your HIP to another representative or estate agent.
