The Government has now introduced Home Information Packs for all properties new to the market from 14th December 2007. This means that the vast majority of home owners will need to order a HIP before they can market their property.

This is a significant change to the home buying and selling process, but provided you understand they key features of a HIP, what they are intended to achieve and ensure that you obtain yours from a reputable source, they are not something that should alarm you and hopefully over time, they will actually improve the overall process.

What is a Home Information Pack?

A HIP contains a collection of important documents that are required when houses are bought and sold. These include various legal searches, land registry documents and an energy performance certificate (EPC), which is intended to tell you and potential buyers how ’green’ a house is. These are the compulsory elements for all properties; leasehold properties require additional information and there are various other documents and reports that can be included if you wish.

What is in a Home Information Pack?

There are two kinds of documents that a HIP may contain; those that are required (mandatory) for all properties and others that are authorised (optional), to be included at the sellers discretion.

Mandatory

• Index of the documents contained in the pack
• Energy Performance Certificate (EPC)Sales Statement summarising the property details and terms of the sale
• Evidence of title from the Land Registry
• Local Authority searches and Drainage and Water searches
• On leasehold properties a copy of the lease is required

Questions and Answers

Do all residential properties need a HIP?

The vast majority do. There are a few exceptions, such as mixed use properties (a shop and flat) and properties with a sitting tenant. Your Reeds Rains manager will advise you if you do not require a HIP.

What is an Energy Performance Certificate (EPC)?

An EPC will tell buyers and sellers about a home’s energy efficiency, using A to G ratings like those used on appliances such as washing machines and refrigerators. The certificate will also specifically show, for each individual property, various improvements that could be made to cut fuel bills and carbon emissions, the costs of doing this and how quickly these will be recouped through reduced spending on energy.

The EPC will be prepared by a Domestic Energy Assessor or a Home Inspector, all of whom have been trained and are licensed via a Government Certification Scheme.

How long will it take to put my property on the market?

Until 1st June 2008, a property can be marketed as soon as a HIP has been ordered (proof of this is required). After the date the property can be offered for sale as soon as the EPC and land registry documents are ready. In most cases producing these documents should take 7 days or less. The rest of the documents (searches and leasehold documents) have to be assembled within 28 days of marketing the property.

How much will it cost?

Reeds Rains have a variety of HIPs products designed to suit most circumstances. It is possible to place your property on the market for free. Your Reeds Rains manager will take you through the menu of HIPs available so that you are able to select the product that matches your requirements best.