Home Information Pack (HIP) - Regulations Change

By Tim Rodemark (Solicitor - Conveyancing)

Many people will not be aware of major changes to HIP regulations coming in on 6 April. We would like to update readers of what needs to be done as a Seller when placing a property on the market or, as a Buyer, what information and documents we can expect an Estate Agent to be holding when looking for that new home.

The main change is to require Estate Agents to hold the relevant HIP documents before marketing can begin as currently the HIP only needs to be ordered before a property can be marketed. This is a major change and will put pressure on the speed of producing a HIP.  Normally this should be done in about 7 days but the earlier it is commissioned by the Seller, the better.

A Property Information Questionnaire (PIQ) is required in the HIP from 6 April.  This will be completed by the Seller and will contain general information about the property that the Seller should be in a position to give as owner/occupier.  Estate agents are unlikely to be able to assist with the completion of the PIQ.

Many HIPs currently include a Personal Local Search prepared by an agent as opposed to an Official Local Search prepared by the Local Authority. From April, indemnity insurance for personal local searches will not be available making them unacceptable to many buyers solicitors. One of the other advantages of the Official Local Search issued by the Council for Mid Sussex properties is that they can be updated if less than 12 months old for £25 rather than buyers having to pay the full fee of £100.

As property lawyers, we see major benefits for sellers where we prepare the HIP as it gives us the opportunity of checking the title, helping in the completion of the PIQ and registering the Seller so we are in a position to proceed speedily with the conveyancing once a buyer is found. Sales are at risk if there is any delay after a sale is agreed.  Sellers (and Buyers) will not normally incur any conveyancing charges until the chain is complete.

As a reminder, from 6 April, the completed HIP will need to contain an Index, a Sale Statement, an Energy Performance Certificate, a PIQ, Title details (and a copy of the Lease if leasehold) and the Local and Water and Drainage Searches.  The HIP is normally available on-line or by email from the estate agent.

The cost of a HIP will vary.  Most estate agents do not prepare the HIP themselves but sub-contract this out which usually adds to the cost. A solicitor should be able to offer the best price and all round service particularly as that will lead efficiently into the conveyancing process. 

For more information please a member of the Conveyancing Team (Tim Rodemark or Kay Stockwell)