Much of the information in the Home Information Pack is already used in the Conveyancing process but is currently obtained after a sale has been agreed. Under the new regulations the responsibility to obtain and pay for the home information pack documents passes from the buyer to the seller and the seller must order the HIP before placing the property on the market.

Some commonly asked questions – and answers – follow.

When do I have to provide a HIP?
If you are marketing a property during the temporary period, which runs from 1st August 2007 until 1st June 2008, then the HIP must be commissioned before marketing can begin. During this period the Energy Performance Certificate must be provided before contracts are exchanged, however, at present, there is no set time limit on when the rest of the HIP should be provided.

If you are marketing a property which falls within the scope of the HIP scheme from 1st June 2008 onwards, the HIP including the EPC must be available to any potential buyers interested in the property from the time the property is first placed on the market.

What if my house was on the market before 1 August?
Properties that are genuinely on the market before the commencement date will not need a HIP. This exemption will apply for as long as marketing continues but the Government may appoint a date at which all properties on the market will require a HIP, irrespective of when the property was first marketed.

What is in the HIP?
The following compulsory documents must be included in a Home Information Pack:

• Home Information Pack Index
• Evidence of title
• Standard searches
• Energy Performance Certificate
• Sale statement
• Additional information for leasehold and commonhold sales, where appropriate.

It is also possible that additional documentation may be included within the HIP, such as a Home Condition Report (a survey), an environmental or flood risk search and other information that would be of interest to a potential buyers.

Who prepares HIPs?
Sellers can instruct their Solicitors, estate agents, separate pack providers, or do it themselves.

Who pays for the HIP?
The seller is responsible for the cost of the HIP. The cost of the HIP will be governed by market forces, but sellers will often be able to defer costs until later on in the sale transaction.

How will I pay for the HIP?
This will depend upon the agreement between the seller and the HIP Provider. Some examples of the ways that HIPs might be paid for are as follows:

• Seller pays for the HIP upfront from Solicitor, estate agent or Pack provider
• Seller compiles the HIP and pays each organisation for the relevant component (e.g. the Land Registry for the title document)
• Estate agent offers the HIP to the seller on a 'no sale, no fee' basis, where the cost of the HIP could be included in the estate agent's commission
• Estate agent offers the HIP to the seller on a 'buy now, pay on completion' basis, which is usually a credit agreement for three or six months between the seller and the organisation preparing the HIP.

These are only indications of possible payment methods – the HIP regulations do not prescribe any particular payment method.

I'm selling my house privately - do I need a HIP?
If you are marketing your property, even if it's just by putting a 'for sale' sign in the window, you need a HIP.  Sales where no marketing takes place (e.g. to a member of the family or a friend) won't need a HIP.

Do I have to put electrical certificates in my HIP?
Electrical certificates (past or present) are not a required component of the HIP, but should be included if the seller has them.

I've lost guarantees of work I have had done - what do I do?
Guarantees aren't a required component of the HIP, but should be included if you have them. In any event the buyer would no doubt request copies at a later stage – so do try and obtain a further copy if you have lost the original.

Should the HIP include a Home Condition Report?
A Home Condition Report could help you sell your property more quickly if it shows that it is in good condition, or if it highlights any problems straight away for potential buyers, it may remove the potential for nasty surprises for buyers later in the transaction.

My house was on the market before HIPs came in.  If I change estate agents now, do I have to get a HIP?
If your house has not been taken off the market i.e. continuous marketing has occurred, then you will not need to commission a HIP. However, if there was a break in marketing you will need to supply a HIP.

What can I do if a HIP/EPC isn't provided?
Except in relation to properties first placed on the market during the temporary period, which runs from 1 August 2007 until the 1st June 2008, which are being marketed without a HIP, potential buyers have a right to a copy of the HIP and this should be provided within 14 days of request. Sellers are entitled to make a reasonable charge to cover copying and postage costs and may also refuse to provide a copy in certain limited cases. These are where the seller believes that the person making the request:

• could not afford the property;
• is not really interested in buying the property
• is not a person to whom the seller would wish to sell the property (but this does not allow them to unlawfully discriminate against someone).

If you believe that you are being denied a copy of the HIP unlawfully, local authority trading standards officers are responsible for enforcement of these duties.

Will the HIP cost the buyer anything?
Copies of HIPs are free to buyers, although a reasonable charge may be made for copying and postage.

Which transactions are exempt from HIPs?
There are some exemptions to the regulations and sellers should seek advice from a qualified property lawyer prior to marketing to assess whether a HIP is required. The exemptions are set out briefly below:

• Business Use – properties which are authorised for business use under the planning regulations and which will remain so at legal completion;
• Residential property converted to business use – a dwelling which has been converted with the appropriate planning consent to business use and will still have business use at legal completion;
• Mixed Commercial/Residential Sales – properties that are a mixture of business and residential i.e. a shop with a flat above;
• Dual Use – properties that are used for both business and residential i.e. a Doctor’s surgery with living accommodation;
• Portfolios of Properties – a number of properties being sold together as a portfolio;
• Unsafe Properties – properties that have been declared unsafe for habitation by the planning authority and which will remain in that condition on legal completion;
• Demolition – property that has a demolition order on it which will remain in place on legal completion;
• Properties not being placed on the Open Market – properties that are sold by landlords (local authorities, housing associations and private landlords) to an existing tenant, property sold to friends/family etc. that has never been placed on the open market.

Please refer to out Frequently asked Questions section if you need further information, or contact our offices.