The Home Information Packs were introduced in 2007 and by the end of December it became compulsory for every home put on the market to have a pack constructed. The purpose of the packs is to provide greater transparency for the buyer and to reduce the number of sales falling through, whilst speeding up the selling process. The packs provide a host of information for the buyer, and include two different elements, one is a compulsory element and the other is non compulsory.

Compulsory Elements of the HIP
The compulsory element makes up the basis of the pack and includes five component parts. These are as follows, the home information pack index, energy performance certificate, sale statement, standard searches and evidence of title. If you are selling leasehold or commonhold property then there are additional documents that are required within the standard elements. Taking a look at the compulsory elements in a bit more detail the home information pack index provides a clear indication that the pack has been completed, the main element of the index is to provide a clear checklist, and if any of the parts are missing this must be stated and the index should be revised accordingly.

Summary of the Compulsory Elements of the Home Information Pack

 - Home Information Pack Index
 - Energy Performance Certificate
 - Sale Statement
 - Standard Searches
 - Evidence of Title

The energy performance certificate was introduced to give the buyer a guide on how efficient the property is. All homes that are being sold are given an energy rating between A and G, A being the most efficient and G being the least efficient. The basis of this part of the document is to provide people with information on environmental impacts of the property such as CO2 emissions. It is generally considered that most properties sold sit in the middle of the scale around D to E, the performance certificate will also provide further information on how the property can be made more efficient.

The third element is the sale statement, this is a document that contains the specifics of the property that is being sold, information includes the address, the type of property i.e./freehold, leasehold or commonhold, whether the property is registered or unregistered and being sold with vacant possession. One of the most important aspects and something that can often hold up a sale of a property are the searches, the home information pack ensures that these are part of the compulsory documentation. The documents include the local land register searches, local authority searches and the provision of drainage and water services for the property. Finally the evidence of title must be included; this information proves that the seller is the owner of the property by including the title deeds.

Commonhold and Leasehold Compulsory Elements
As mentioned previously if you are the owner of a commonhold or leasehold property then there additional compulsory elements to be added to the pack. For leasehold documents this will a copy of the lease as a required addition, there are other documents that can be included should this be necessary, such as service charges, any further regulations that are not included in the lease, summary of additional works to be undertaken and the managing agent details. The extra commonhold documents include an official copy of the individual register and title plans for the common parts. Plus where necessary copies of rules and regulations relating to the commonhold, copies of requests for payments in the last twelve months, name and address of any managing agents and summary of any proposed works.

Non Compulsory Elements
There are also some non compulsory elements which include a home condition report which includes information on the condition of the property. This enables the seller to carry out any necessary repairs early in the selling process and for buyers it can be used to allow budgeting that may need to be carried out for any required work. A legal summary can be included that will break down any information in complex documents included in the pack. The home use forms allow the seller to provide additional useful information on different aspects of the property including boundaries, planning permissions and any other details of use to the buyer.

Who Constructs and Owns the HIP
If you are buying a property then the pack has to be made available from whoever is marketing the property. They need to be provided free of charge to anybody who requests them, and this is usually the managing estate agent or if a private sale the seller directly. For the seller the process of making a pack will usually be given to a third party company, the selling estate agents will have their own preferred suppliers who they will use or recommend. Generally it is a good idea to have the pack made in your name and not the selling agent, this will enable you to change agents during the selling process and take the pack with you. If the pack is made in the agents name then they will either sell the pack to you or you will have to make a new pack up. The cost of constructing a home information pack is usually around £250 and must be put together before the property is put on the market. When a buyer requests a copy this must be made available within 14 days.

When the packs were first introduced there was considerable opposition to them and many people felt they were just another unnecessary set of documentation. The home information pack is still a very new addition to the property sales market and has only been fully implemented since December 2007 for all residential properties; time will tell if they have become a success. Ultimately if they help to reduce the number of property sales that fall through then they will be deemed a success, it looks as though they are now here to stay. There is lots of information available to help buyers and sellers understand the process behind HIPs, why they have been introduced and the benefits that they provide to both parties. If you are selling or buying a property then make sure you take the time to understand the home information packs and what information is provided in them.
 

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