Frequently Asked Questions

Q. Do I need to include all of the leasehold information? My landlord wants to charge a large fee for this.

A. During the transitional period (currently scheduled to end on 31st December 2008), only the lease will be mandatory for leasehold properties. The leasehold information will be voluntary, so there is no obligation to provide this. Once the transitional period ends, there will be a need to include leasehold information and if this can only be obtained from your landlord, the landlord will seek to charge for providing this.

Q. During the transitional period, can the HIP be ordered (so that marketing can commence) but none of the documents paid for?

A. No. Although the revised Regulations state that during the transitional period, marketing can commence immediately requests have been made for all required documents, the request must comply with the Regulations which state that these should be addressed to the proper person and any fee paid, to be a valid request. The government has accepted that a request with payment (or an agreement to pay) to a HIP provider will constitute a valid request to enable marketing to commence.

Q. Can a house be described as 3 beds and a study to avoid it needing a HIP on 1st August 2007? (The same applies to homes with 3 or more bedrooms from 10th September 2007)

A. Yes. The Commencement Order states that homes will be considered to have 4 bedrooms if marketed as such. So regardless of the actual number of bedrooms, it is the way that a property is described in marketing literature that defines whether it needs a HIP. This is obviously open to abuse and we had seen some blatant instances of this. There are arguments that this may reduce the number of potential buyers e.g. search criteria on most property portals and agents' web sites will ask for a minimum number of bedrooms to be input. Also to bear in mind is the fact that the average price for a 3-bed home is at least �90,000 less than the average price of a 4-bed home. These issues were short-term and since all homes now require a HIP if marketed on or after 14th December 2007, have not recurred.

Q. If a 4-bed property is marketed before 1st August 2007, will it need a HIP?

A. No. provided there was genuine marketing before 1st August 2007, then no HIP will be required. This will apply to each property type e.g. 3-beds and above etc. on 10th September 2007 and 2 beds and above on 14th December 2007.

Q. What if the property didn't need a HIP but is still on the market after 6 or 12 months?

A. There is no date yet imposed, by which all properties on the market must have a HIP. One is expected to be set sometime in the summer of 2009.

Q. Do new-build properties require a HIP?

A. Since 6th April 2008 all properties will require a HIP regardless of whether they are physically complete or under construction. Prior to that date, homes under construction did not need a HIP - unless they were being built to old building regulations. The relevant date is the date the home is first marketed.

Q. What criteria are applied to assess whether a property is physically complete?

A. Regulation 2(3)(b) confirms that a building will be considered physically complete if it: -

(i) is wind and weather proof

(ii) is safe and sanitary for occupants and visitors

(iii) has heating and hot & cold water and gas and electricity services; and

(iv) has washing and drainage services

Q. Having taken a property in part-exchange, after 1st August, I am now selling on using the original agent. Marketing has never stopped and has been on going since before 1st August. Can I rely on the fact that marketing has been continuous, before 1st August 2007, to avoid the need for a HIP.

A. No. the Regulations in this regard specifically refer to the need for the HIP to be provided "by or on behalf of the seller" so a HIP will be required. A new 'first day of marketing' occurs and a new HIP is needed.

Q. If I have taken a property in part-exchange and am now selling straight on, can I use the sellers' HIP?

A. No. A new first day of marketing is triggered, so a new HIP is required. The documents in the original owners' HIP may be out of date and the Index and Sale Statement will not be applicable to your sale.

Marketing

Q. What is "marketing"?

A. Marketing is when the seller or estate agent (a) puts the property on the market; or (b) makes public the fact that the property is on the market.

A property is put "on the market" when the fact that it is or may become available for sale, is advertised or otherwise communicated (in whatever form and by whatever means) to the public or to a section of the public by or on behalf of the seller. This includes erecting a "For Sale" board, inserting an advert in the press or an estate agent telephoning a list of potential buyers

Q. When will a property be "off the market"?

A. When it has been withdrawn from sale/marketing. This will include where the seller no longer intends to sell, but also the situation where a seller has accepted an offer from a prospective buyer, even though the sale has not exchanged.

Q. When can marketing start?

A. During the transitional period (which is extended to 31st December 2008), marketing can commence immediately a HIP has been ordered. However, once the full regulations come into force after the end of the transition period, no marketing can, legally, take place until the mandatory elements of the HIP are available. A lot will depend on how quickly access is allowed to the Energy Assessor to complete an Energy Performance Certificate.

Q. Is it necessary to wait for all of the HIP documents to be available before marketing?

A. No. As long as the Index, Energy Performance Certificate, Sale Statement and title information are available, marketing can begin. It will be necessary to prove that all of the remaining documents have been requested and paid for.

Q. Is it correct that marketing can start after 14 days even if the HIP isn't complete?

A. This isn't entirely correct. There are some core documents, such as title, and some of the prescribed forms, which are absolutely necessary before marketing can commence. Marketing can commence without the Energy Performance Certificate, if after 14 days from it being requested, it is still not available.

Q. What if my property was marketed before the 1st August 2007 and is now going back on the market because the buyer has pulled out?

A. Provided marketing originally started before 1st August 2007 (or 10th September 2007 for 3 or more bedroomed homes and 14th December 2007 for remaining homes), and marketing is recommenced within 28 days of the buyer withdrawing, no HIP is required.

Timescales

Q. What timescales are envisaged for producing a HIP?

A. Until the end of the transitional period, marketing can commence immediately a HIP is commissioned. Once first-day marketing ends, marketing can commence only when some key documents are in the HIP. For freehold registered properties, it is anticipated that those parts of the HIP required before marketing can proceed will be processed and available within 2-4 working days of request.

Q. But what about leaseholds and unregistered?

A. There is no doubt that the information required for these types of property will take time to obtain. However, provided the information has been requested, marketing can commence without these (provided the other minimum required documents and information are to hand)

Q. Is a "new" HIP required if a sale falls through and the property is put back "on the market"?

A. If a property is taken off the market - but subsequently remarketed

within a year of the initial first point of marketing, the original HIP can be used. For the purpose of HIPs, a property is taken off the market if a buyer is found and offer accepted. In these circumstances, if the sale falls through, a new HIP is not required (no matter how long it has been "off the market") provided it is remarketed within 28 days of the buyer's withdrawal.

Q. How long is a HIP valid for?

A. Provided the documents and information in a HIP are valid at the point it is first marketed, they will remain valid, for the purposes of the HIP, until the property is sold or taken off the market. A HIP will remain valid as long as the property remains marketed, and there is no obligation to refresh or update pack documents.

Q. But I have heard that searches are only valid for 3 months?

A. This is a statement often heard in relation to the conveyancing process. It is important to clarify that search results are only valid on the day they are issued. However the Council of Mortgage Lenders have recommended that their members (who make up most of the UK's major lending institutions) accept search results up to 6 months old at completion. This period was increased from 3 months in response to challenges presented by HIPs. If during the subsequent sale, the buyers' conveyancer deems that searches or other documentation/information is out of date, these will need to be renewed for the purpose of conveyancing due diligence. Many conveyancers will change their protocols to work with HIPs to ensure that search results will be accepted.

Q. Can a previous HIP - compiled by my seller when I bought - be used by me if I sell later?

A. No.

Exceptions

Q. Do all properties have to have a HIP?

A. No. Only residential properties that are sold with vacant possession require a HIP. There are a number of specific exceptions: -

Non-residential premises - where the most recent use is or was primarily non-residential, including any dwelling/house which is being marketed as being due to be converted for primarily non-residential use. All planning permissions and other consents must exist in support of that fact.
Farms or other agricultural land where the total area of land being sold with the dwelling is 5 hectares or more and the most recent use of the land is or was primarily horticultural or cultivation; breeding or keeping of animal or livestock; or as grazing land or woodlands
Seasonal and holiday accommodation - where planning permission or other regulation imposes a condition that he property is to be occupied as holiday accommodation
Mixed sales - where the dwelling is sold with one or more non-residential premises and there is no intention to sell separately
Dual use - where the dwelling/house forming part of the property was most recently used for both residential and non-residential use and is being marketed with non-residential or both residential and non-residential use
Portfolios - where more than one property is sold together as a portfolio and there is no intention to sell any single property in the portfolio separately
Unsafe properties - any property which is unoccupied and it's condition poses a serious risk to safety and is being marketed as unsuitable for occupation in its current condition
Properties to be demolished - where a property is being marketed for sale as suitable for demolition and redevelopment and all planning permissions and other consents to redevelop exist

Q. I have some farm buildings which I am converting and selling as homes. Are they within the "farms" exemption?

A. No. if the intention is to sell as a dwelling/house, a HIP is required regardless of what state they are in now.

Q. Can I market a pair of flats without a HIP, even though I intend selling one only?

A. No. A portfolio (2 or more properties) must be marketed and sold as such and any intention to "break up" the portfolio and sell any individual property separately will invalidate the exemption. A HIP will be required for each flat.

Q. I have a tenant at the moment, but will be selling once he's moved out. Can I avoid the need for a HIP on the basis that the property is tenanted?

A. No. Firstly, it is the intention to sell with the tenant in place that will avoid the need for a HIP and secondly, your marketing of the property will presumably make it clear that the tenant is to vacate as the alternative is to severely reduce the value of the property.

Q. I have recently bought some farm buildings, which I intend to renovate and sell in 5 lots, the main farmhouse is 5 bedrooms, but is currently used as a farm, there is an existing 2-bed cottage, and I am converting some outbuildings into 3 homes, with 1, 2 and 3 bedrooms and building a pair of new homes on vacant land. Do I need a HIP for all or any of the properties?

A. As the intention appears to be to sell as residential units (rather than a farm), the "Farms" exception will not apply; neither will the "Portfolio" exception as each home is being marketed for sale separately. Taking each home in turn, the 5-bed farmhouse and the 3 bedroomed home will need a HIP; the cottage and the 2 smaller homes were marketed before 10th September 2007 so are exempt as having less than 3 bedrooms; and the newly constructed homes will be exempt as marketing commenced before 6th April 2008. If marketing of any of the homes commenced after HIPs were rolled out for that house type, all of the homes would need an individual HIP.

General

Q. Can a full structural survey, carried out by a RICS surveyor be substituted in the HIP instead of a HCR?

A. Not unless the RICS surveyor is also certified as a home inspector and can show that the survey complies with the Regulations. The Regulations state that any HCR must comply with Schedule 5, which specifies that only a Home Inspector can carry out an HCR, and also prescribes the terms for the preparation of an HCR. Regulation 11(2) provides that no pack document can be described as a "home condition report" unless it so complies.

Q. How will I obtain a printed copy of the HIP?

A. Additional printed copies for buyers can be obtained on our web site on payment of a fee to cover the administration and print costs. There is an obligation to provide a printed copy of the HIP with a proviso that the person providing this can charge (up front) for printing and despatch.

Q. Can a buyer insist on having a paper copy of the HIP, or will estate agents be able to offer only electronic copies?

A. The obligation to provide a copy of the HIP to a buyer on demand is contained in The Housing Act 2004 Section 156. A buyer can insist on a paper copy, but there is provision (section 156(8)) for a charge to be made for the reasonable costs of making and sending a pack to a buyer, if requested. Also the estate agent has to deliver the HIP within 14 days of the request.

Q. Will the web-site be available 7 days a week?

A. Our IT infrastructure supports a 24/7 365 days per year solution, with upgrades and version releases being timed for low-traffic periods, with little or no impact on the consumer.

Q. Does an estate agent have to provide a HIP for any and every potential buyer?

A. The person marketing the property must be able to provide a copy pack or pack document upon demand. However there is a right to refuse to provide a pack or pack document where the seller or estate agent has reasonable grounds to believe that the person making the request either: -

is unlikely to have sufficient means to buy the property; or
is not genuinely interested in buying a property of a general description which applies to the property; or
is not a person to whom the seller is likely to be prepared to sell the property; or
if he knows or suspects the person to be an officer of an enforcement authority.

But great care has to be taken not to breach discrimination laws. And this does not preclude the agent from actually having the HIP available.

Q. How do I view/see my HIP?

A. You can view the HIP as it is being compiled. To do this you must log on to your case on the secure internet site - details of which will be available from your estate agent/introducer

Q. What if I want to change something in my Pack?

A. If simply wanting to update documents, this is something that can be done by advising your HIP provider. However, it is not possible to amend any document or search result, provided by a third party as these are documents of fact. If there is an inaccuracy in the information supplied in your instruction e.g. the tenure was stated incorrectly, then this will be amended.

Q. I am not happy with the Energy Performance Certificate as it highlights issues with my house. Can I have another one?

A. As the EPC is based on factual data gathered by a Domestic Energy Assessor during an inspection of your property, and the EPC is compiled by a central register using this data, the result of a further inspection is unlikely to be any different. However, if you wish to carry out any of the recommendations in the report, a further inspection can be commissioned and paid for to update the information.

Q. I want to change estate agents - can I take my HIP with me?

A. This will depend upon the arrangement you have with your current estate agent, who you must speak to immediately to clarify. Any new estate agent will become responsible for the content of the HIP even though it has been compiled by another agent, so they may refuse to use it or charge to have it checked, to ensure its compliance.

Q. The HIP shows the property in my name only, but my wife and I live in the property

A. This is something that will be dealt with by your conveyancer, when you sell. It does not have to be changed for the purpose of the HIP, but you should ensure that your conveyancer is aware of this as soon as possible to avoid delays in the conveyancing process.

Q. The HIP shows the property in my (my wife's) maiden name. How can I change this?

A. This is something that will be dealt with by your conveyancer, when you sell, but it is anticipated that a copy of your marriage certificate will be needed by your conveyancer. This will not affect the HIP.

Q. Can I charge my buyer for the HIP?

A. The HIP must be available to any potential buyer, and although a reasonable copying and postage charge can be made by anyone providing printed copies of the HIP, a seller would not be able to otherwise charge for the HIP or any part of it.

Q. But I have paid for the HIP so it must be mine?

A. It is, but the law provides that it must be made available to any buyer, as they are entitled to it.

Q. I want a copy of my HIP. How do I get this?

A. Speak to your introducer, who will be able to assist you in detailing your options. If you want a paper copy, this can be ordered on line.

Q. Why has my HIP not been started?

A. It is possible that work has been started to compile your HIP, but that documents are awaited. If you have not been contacted by an Energy Assessor, to arrange an inspection appointment, you should contact your HIP provider immediately.

Q. My name is spelled incorrectly in the HIP. Can you change this?

A. Any form included in the HIP e.g. the Sale Statement or Index, will have been populated from your instruction. If incorrect, then please advise your estate agent/introducer to amend their records. If on the other hand your name is incorrectly spelled in a document e.g. Title documents, this will have to be addressed by your conveyancer when you sell.

Q. I have all of the leasehold information to hand. Can I use this in my HIP?

A. Yes, although if any of the information is incomplete, we will need to write to the landlord/managing agent in any event. You should consider the effect on timescales of producing only part of the information i.e. this would delay marketing.

Q. I want to hide the price I paid for the property. Can this be done?

A. No. If this appears in the Official Copies, this is public record. On a general note, no pack document may be amended in any way (with the exception of inaccuracies in forms such as Sale Statement)

Q. I do not want everyone to see the HIP. Can I vet people who request it?

A. The law states that any potential buyer must be able to view a HIP. Estate agents may use their discretion if they believe that the buyer is not genuine, but must be careful not to discriminate.

Q. I have my own deeds. Do you need these?

A. Yes. If title to your property has not been registered at HM Land Registry, we will need the original deeds to enable us to compile the HIP. These should be sent to us immediately, preferably by registered post.

Q. I have some additional documents (specific searches, guarantees, property info forms, planning permissions etc.) and want these included in my HIP. Is this possible?

A. Yes. If you send these to us we will scan in these documents and include them as authorised documents in the HIP. There may be an additional charge for this.

Q. Can additional documents/searches be obtained/carried out and included in the HIP?

A. Yes, but there will be a cost implication to this. Most searches are allowed in a HIP as authorised documents and we can progress requests for these on an ad-hoc basis. These requests would have to be made and paid for at the time of the HIP instruction.

Q. I have an EPC which was done 5 months ago. Can this be included in the HIP?

A. Yes, provided it is a valid EPC and complies with the HIP Regulations. EPCs for inclusion in a HIP must be no less than 3 years old at the time of marketing (this was extended from 12 months). Your agent would have to accept full liability for inclusion of any EPC not acquired through ours or their own suppliers. If any improvements have been made to the home, the energy rating may no longer be accurate and it is recommended that a new EPC is commissioned.

Q. The owner of the property is deceased and his/her son/daughter is selling. Do they need to provide any probate documents?

A. No. It will be sufficient for the parent's title to be used as long as the instruction confirms that the seller is selling as a representative of a deceased owner.

Q. Can an estate agent include advertising literature in the HIP offering financial services or other products?

A. No. This is specifically prohibited under the Regulations.

Q. I have old Official Copies of my title from when I bought the property 2 years ago. Can I use these in my HIP?

A. No. these must be 3 months old or less at the point of first marketing. Also, they will refer to the previous owner and may cause confusion.

Q. The energy rating for my home is low. I want to query this.

A. You must speak to the domestic energy assessor who carried out the EPC. His full contact details are included in the EPC itself.

Q. Will the local search in the HIP be an official or personal search?

A. We use personal searches, which comply with the HIP Regulations and are therefore acceptable in the HIP.

Q. But what if the buyer will not accept a personal search?

A. As a personal search is adequate for the purpose of the HIP, you and your agent are under no obligation to provide anything further. If the buyer's conveyancer decides that an official local search is required, this will be as part of the conveyancing process, and payable by the buyer. It will not impact on or render invalid the search in the HIP.

Q. Why are personal searches used?

A. There are 2 reasons - speed and cost. Personal searches are generally a lot quicker to obtain than official searches made directly to the local authority. With personal searches, we can fix the cost at a competitive level whereas official search costs, charged by local authorities, vary hugely and some authorities charge upwards of £300! This cost would have an upward impact on the HIP price.

Q. Is the estate agent obliged to provide a free printed copy of the HIP?

A. No. The obligation of the responsible person in relation to HIPs are contained in the Housing Act 2004 sections 155 to 158 and include (at s.156) a duty to provide a copy of the home information pack on request. This provides that the responsible person must be able - if requested by a potential buyer - to provide a copy of the HIP within 14 days of that request.

The HIP can be viewed on line using the link provided, and a printed copy of the HIP can be obtained by ordering via that link. As part of that order process - and as provided for in s.156(9) of the Housing Act 2004, a payment will be required to be made prior to the print and despatch of the HIP.

There is no obligation on the responsible person or their HIP provider to provide a printed copy free of charge. For further clarification, see the government's web site at http://www.homeinformationpacks.gov.uk/industry/117_Format_(electronic_or_paper).html.