What is a HIP

The current press would make you think that HIPs are a  green policy to reduce our carbon footprint. But they were primarily developed to speed up the house buying and selling process and reduce the wasted time and money in failed sales.  Although there is debate on whether they will reduce carbon emissions HIPS  will certainly speed up sales.

In the past once a sale had been agreed solicitors were instructed and they gathered the information needed to agree the contract and complete a sale. How many times have you heard of sales being delayed as solicitors get searches.

The HIP moves the information gathering to the front of the process so that when a purchaser puts in an offer they have all of the information they need to proceed.  This is not new information so when everyone has a HIP overall costs will not increase and sales will be able to proceed faster.

A HIP must contain the following informaion :-

• Index – with the date contents were last amended.
• Property Information Questionnaire - Completed by the seller providing information on gas and electricity safety, flood risk, any structural changes to the property and parking details.
• Sale Statement - the name of the seller and address of the property with information on whether it is freehold or leasehold and registered or unregisterd.
• Local Authority Search - this includes for example details of planning permissions, road building proposals, conservation areas or tree preservation orders.
• Water Search - details of the drainage and water services to the property
• Evidence of Ownership - For a registered property this would be a copy of the land registry details, if the property is not registered then alternative evidence is required such as property deeds. 
• Energy Performance Certificate – also now described by some as a fridge rating. This details how energy efficient a house is with recommendations on cost effective improvements.

Additional authorised documents can also be included in the pack including :

• Home Condition Report – a professional inspection carried out by a qualified home inspector with a report giving prospective purchasers information about construction and condition of property.
• Home Use Form – similar to the current property information form providing information on the property itself such as boundaries and access rights.
• Home Contents Form - similar to the current fixtures, fittings and contents form detailing what is to be included in the sale.