From September 10th 2007 all residential properties in England and Wales with 3 or more bedrooms will need a Home Information Pack (HIP) before they can be placed on the market. Smaller properties will be phased in as soon as sufficient energy assessors are fully qualified.

For sellers, providing a Pack upfront should reduce the likelihood of any nasty surprises in the selling process that could delay the sale, as buyers will be able to make more informed decisions about purchasing their home. For buyers, the Pack provides essential information about properties they are considering buying, free of charge.

The documents include:-

1) Home Information Pack Index

The Index provides a checklist for sellers, buyers, estate agents and enforcement authorities.

2) Energy Performance Certificate

Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A. The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions. The average property in the UK is in bands D-E for both ratings. The Certificate includes recommendations on ways to improve the home’s energy efficiency to save you money and help the environment.

3) Sale statement

The sale statement should provide some basic information about the property, including:

a) The address of the property being sold
b) Whether the property is freehold, leasehold or commonhold
c) Whether the property is registered or unregistered
d) Whether or not the property is being sold with vacant possession

4) Standard searches

The HIP must include

a) The local land charges register relating to the property being sold. Once a search is completed, which can be carried out by a personal search company or a local authority, you will receive an official search certificate.
b) Other records held by the local authority on matters of interest to buyers, such as planning decisions and road building proposals. These are referred to as local enquiries in the HIP Regulations. A local authority or a personal search company can be used.
c) The provision of drainage and water services to the property. The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations).

5) Evidence of Title

These documents prove that the seller owns the property and therefore has the right to sell it. Where the property being sold is registered, certain documents that are available on request from the Land Registry must be included in the Pack. These provide an up-to-date official record of who owns the land, and consist of:

a) Official copies of the individual register (made up of a property register, proprietorship register and, typically a charges register)
b) An official copy of the title plan

For sales of unregistered land, the Pack must include copies of a certificate of an official search of the index map (obtained from the Land Registry), and those documents that the seller intends to rely on to provide evidence of title to the property, and thus the right to sell it. More detailed advice on the sort of evidence that is usually considered acceptable is in the procedural guidance to the HIP Regulations.

6) Home Condition Report

A Home Condition Report (HCR) contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report. The Report is an important part of the Pack, and can be included by sellers on a voluntary basis. Sellers who provide a Report will have an early opportunity to carry out repair work on the property or obtain quotes prior to marketing. Buyers can use it at the beginning of the home-buying process to minimise the possibility of being faced with unexpected repair bills and other surprises. Lenders can benefit by using the Report to inform their valuations, reducing the need to repeat a detailed on-site inspection at the buyer’s expense.