What's in a Home Information Pack?
The Home Information Pack contains important information that buyers and sellers need to know. From 1 August 2007, anyone marketing a 4+ bed property, or their representative, will be legally required to have a Home Information Pack and make it available to potential buyers of the property. As further Domestic Energy Assessors become qualified further properties will be required to have a pack.
For sellers , providing a Pack upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home.
For buyers , the Pack provides essential information about properties they are considering buying, free of charge.
What does a Pack contain?
Information Pack Index
The compulsory documents include a Home Information Pack Index listing the documents contained in the Pack.
The Index provides a checklist for sellers, buyers, estate agents and enforcement authorities. Where a document that must be included in the Pack is unavailable, the Index must say so, give the reason it is missing, and indicate what steps are being taken to obtain it. Where documents are added to or removed from the Pack at a later stage, the Index should be revised accordingly.
Energy Performance Certificate
Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A.
The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.
The average property in the UK is in bands D-E for both ratings. The Certificate includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment.
A copy of the format being trialed is available on our Publications Page.
Sellers of newly built homes will have to provide a predicted assessment of the energy efficiency of the property, but a full Energy Performance Certificate should be provided to the buyer when the home is completed.
Sale Statement
The sale statement should provide some basic information about the site, including:
• The address of the property being sold
• Whether the property is freehold, leasehold or commonhold
• Whether the property is registered or unregistered
• Whether or not the property is being sold with vacant possession
Standard Searches
The Home Information Pack must include:
• The local land charges register relating to the property being sold. If the search is carried out by the local authority, an
official search certificate will be provided. Alternatively a personal search company can be used.
• Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack regulations. A local authority or a personal search company can be used.
• The provision of drainage and water services to the property. The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations).
The procedural guidance to the Home Information Pack Regulations contains more information about what should be included in the search reports. For detailed advice dealing with local enquiries, drainage and water, and general provisions applying to all search reports and those who provide them (e.g. local authorities, water companies and personal search companies), see Communities and Local Government website.
Evidence of Title
These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the Land Registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:
• Official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register)
• An official copy of the title plan
In the case of the sale of a commonhold interest, official copies of the register and title plan should be produced for both the unit and common parts. The Land Registry has details of additional requirements for sales of commonhold properties.
For sales of unregistered land, the Pack must include copies of a certificate of an official search of the index map (obtained from the Land Registry), and those documents that the seller intends to rely on to provide evidence of title to the property, and thus the right to sell it. More detailed advice on the sort of evidence that is usually considered acceptable is in the procedural guidance to the Home Information Pack Regulations.
Leasehold and commonhold properties
Most of the documents that must be included in the Home Information Pack are applicable to all transactions, but some are needed only for leasehold and commonhold sales.
The required leasehold documents are:
• A copy of the lease
• Any regulations or rules that apply to the property that aren't mentioned in the lease and any proposed amendments to same
• Statements or summaries of service charges covering the previous 36 months
• Where appropriate, the most recent requests for payment of service charges, ground rent, insurance against damage for the building in which the property is situated, and insurance in respect of personal injury caused by or within the building during the 12-month period before marketing began
• The name and address of the current or proposed lessor, and details of any managing agent that has been appointed or proposed by the lessor to manage the property
• A summary of any works being undertaken or proposed that will affect the property or the building in which it's situated.
The required commonhold documents are:
An official copy of the individual register and title plan for the common parts. This is in addition to official copies for the unit (see our section on Evidence of title).
An official copy of the commonhold community statement. You can download this document from Land Registry here.
Where they are reasonably obtainable, or sellers can reasonably be expected to be aware of them, the following documents and information are also required:
• Copies of any regulations or rules not described in the commonhold community statement and any amendments proposed to those regulations or to the commonhold community statement
• Copies of any requests for payments made in the previous 12 months in respect of commonhold assessment, reserve fund levy and insurance (if not covered by a request for commonhold assessment)
• The name and address of any managing agent or other person appointed or proposed to be appointed by the commonhold association to manage the commonhold
• A summary of current or proposed works affecting the commonhold.
Optional documents('Authorised')
Home Condition Report
A Home Condition Report contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report.
The Report is an important part of the Pack, and can be included by sellers on a voluntary basis.
Sellers who provide a Report will have an early opportunity to carry out repair work on the property or obtain quotes prior to marketing.
Buyers can use it at the beginning of the home-buying process to minimise the possibility of being faced with unexpected repair bills and other surprises.
Lenders can benefit by using the Reports to inform their valuations, reducing the need to repeat a detailed on-site inspection at the buyer's expense.
The Government believes there will be significant benefits to home sellers if they top up their Packs to include full Home Condition Reports, and that this is a product that the market can deliver. Communities and Local Government is working with stakeholders to facilitate the voluntary take-up of the full Report, and has invested resources in promoting and developing it for consumers. You can see a sample of a Home Condition Report on our Publications page.
A number of area trials have been carried out to encourage the take up of the Report - details can be found here.
Home Inspectors responsible for preparing Home Condition Reports will hold a qualification at NVQ Level 4 (equivalent to degree level), and will require in-depth knowledge and practical understanding of residential building construction and defects across a range of properties as set out in the approved National Occupational Standards for Home Inspectors. You can find out more about the standards on our industry site.
Legal summary
Home Information Packs will contain some complex documents that can be difficult to understand. The optional summary of the legal content of the pack could therefore be very helpful to buyers, although it will not remove the need for buyers to take their own legal advice as well.
Home use / contents forms
Home Use and Home Contents Forms let sellers give buyers information on a range of matters relating to the property.
These include information on boundaries, notices, services, sharing with neighbours, planning permissions and other matters of interest to potential buyers.
It is usual for sellers to declare which fixtures and fittings and other contents of the property are included in the sale, are excluded from the sale, or are subject to negotiation. Standard forms to help sellers do this are available on our Publications page.
The Law Society also produces its own forms to help solicitors and licensed conveyancers produce Packs.
Other documents
Sellers could speed up the sale if they include non-standard searches in the Home Information Pack where appropriate.
For example, it's standard practice to obtain a mining search in areas where coal mining has taken place. Sellers in these areas will save time if they provide this search in the Pack.
Other searches cover rights of way, ground stability and actual or potential environmental hazards such as flooding and contaminated land.
Sellers will also want to include guarantees and warranties for work already carried out on their homes.
If certain documents (i.e. searches, evidence of title for unregistered home and leasehold/commonhold information) cannot be obtained in time, sellers can start marketing with a Pack that includes an index, sale statement, evidence of title and an Energy Performance Certificate only. However, the seller must be able to show that the missing items have been commissioned, and are expected to arrive as soon as practicable - certainly no later than 28 days of the property being put on the market.
Much of the information in the HIP 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 HIP documents passes from the buyer to the seller and the information must be obtained before the property is placed on the market.
Who can prepare my HIP?
fama can produce Home Information Packs and Energy Performance Certificates. We can prepare them direct for the home owner, an estate agent or a solicitor. For more information on content and arranging a HIP contact us with your details and we will arrange an appointment.
How will HIPs help the current buying and selling process?
HIPs aim to reduce the stress of buying and selling a home by providing key documents at the time a property is put on the market. Currently this information is not normally made available until after an offer has been negotiated often causing sales to be renegotiated or collapse altogether.
The HIPs aim to increase confidence in the sales process from the start. Estate agents marketing homes with packs will be required, for the first time, to belong to an approved consumer redress scheme. This means more peace of mind and a better standard of service for consumers.
Who is entitled to see a copy of the HIP?
A copy of the HIP must be made available to potential buyers upon request. There is provision within the regulations for the seller or their selling agent to refuse to provide a copy of the HIP under certain circumstances. It is important to take qualified legal advice before refusing to supply a copy of the HIP to a potential buyer. A reasonable charge may be levied by the selling agent for producing a paper copy of the HIP and for any postage incurred.
The seller or their agent must also provide a copy of the HIP on demand to any law enforcement agency.
What if a property is already on sale before the 1 st June?
It is proposed that properties marketed before 1 st June 2007 can continue to be marketed without a HIP until 1 st Jan 2008..
How long does a HIP last?
Until the home is sold, and if it's taken off the market for less than a year and then re-marketed, the same pack may be used.
Are HIPs required across the UK ?
No - only in England and Wales
I'm selling my house privately - do I need a Home Information Pack?
If you are marketing your property, even if it's just by putting a 'for sale' sign in the window, you need a Pack. Sales where no marketing takes place (e.g. to a member of the family) won't need a Pack.
How long is a Pack valid for?
Some documents can be no be more than three months old when marketing starts, but there is no obligation to update Packs as long as the property remains on the market.
No component of the Pack should be more than 12 months old on the day the property goes on sale. For more details, see the regulations on the industry site.
Who pays for the Pack?
The seller is responsible for the cost of a Home Information Pack. The cost of the Pack is down to the market.
Do I have to put electrical certificates in my Pack?
Electrical certificates (past or present) are not a required component of the Pack, but can be included if the seller has them.
I've lost guarantees of work I have had done - what do I do?
Don't worry - guarantees aren't a required component of the Pack, but can be included if you have them.
If any documents are still outstanding towards the end of the 28-day period, you may wish to look into the delay.
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