As of 14th December 2007 the way in which all residential properties were marketed changed. New legislation, subject to very few exceptions now, requires that all homes have a Home Information Pack (HIP) prior to marketing and as a result we as agents are required to take responsibility for ensuring the HIP is in place (failure to comply with the legislation carries repeated statutory fixed penalty fines).

The introduction of HIPs is part of a wider programme of reforms to home buying and selling including e-conveyancing and better redress, which aims to provide consumers with a clearer, more transparent and effective service, with better value for money, benefiting all potential homebuyers and helping in tackling climate change.

WHAT IS REQUIRED?

Compulsory documents
As from 6th April 2009 'First Day Marketing' will not be allowed and it will be necessary to have the complete pack in place before marketing and the HIP will need to contain the following, at the very minimum:

• An Index
• Property Information Questionnaire
• An Energy Performance Certificate (EPC) or predicted energy assessment
• A Sale statement
• Evidence of title

All other required documents e.g. local property and water searches should be added to the HIP as soon as possible but must be included in the pack within 28 days of the first point of marketing.

What is an Energy Performance Certificate?
An Energy Performance Certificate, which the Government sees as especially important, will give your home an efficiency rating from A to G, where A is the most energy efficient, similar to gradings you now find on new domestic equipment. It will also offer advice on how to save energy and reduce fuel bills and by law we must include this information in our sales particulars.

Optional documents
Presently sellers can choose to include the following:

• Home Condition Report
• Home use form
• Home Contents Form
• Legal Summary of a Pack, or a Pack document
• Other Searches
• Warranties and Guarantees

When will sellers NOT need a Pack?
Packs are presently not required for properties that are:

• Unsafe and not fit for human occupation
• Due to be demolished
• Sold without vacant possession
• Non-residential
• Used as holiday or seasonal accommodation
• Mixed use (e.g. a shop and flat above) and being sold as one lot
• Dual use (e.g. a property that can be used for residential and non-residential purposes at the same time, such as a guesthouse)
• Part of a private sale (where the property is not marketed)
• Part of the sale of a property portfolio.

How long will Packs be valid?
The Evidence of Title and searches cannot be over three months old and the Energy Performance Certificate (EPC) cannot be more than three years old when a property is first marketed. However, once a HIP has been commissioned and if the property is continuously marketed there is no obligation on either the seller or the agent to update the documentation. The only time certain elements of a HIP (the title and searches) must be updated is if a property is taken off the market a year after the original first point of marketing and only when it is remarketed. As EPCs last for 10 years they can be reused, although they must be less than three years old on initial inclusion.

Where can Sellers go for More Information?
Sellers should visit the relevant section of the Home Information Pack website at: www.homeinformationpacks.gov.uk.

How much will Packs cost sellers?
The cost of a Pack will vary although we expect the average cost to be around £300 plus VAT including the Energy Performance Certificate and our administration costs. It will also depend on which optional documents are included but we, in consultation with our HIP Provider, can process all this for you in a matter of days in tandem with the preparation of your sales particulars, photography and floor plans etc.

We hope this is of constructive use to you but please ask for any further up-to-date information that may have changed since this information went online.