Most sellers of residential property are required to collate, prior to marketing, a defined list of documents, in order to better inform perspective buyers at the outset.
Content
In general terms, HIPs must include;
- a HIP index
- a property information questionnaire sheet with replies
- a sale statement
- evidence of title
- an energy performance certificate ("EPC")
- sustainability information if a newly built home and
- basic search documents
and may also include:
- a home condition report
- legal summary
- home use contents form
- other specialist searches e.g a mining search
In the case of leasehold property, they must also include:
- a copy of the lease,
and may also include:
- management accounts
- regulations
- building insurance details and
- information concerning the landlord and the managing agent
Comment
The overriding objective of HIPs is to help buyers to make better decisions as to whether or not to submit offers to purchase.
The requirement for an EPC has been driven by an EU directive seeking to minimise damage to the environment through the reduction of fuel and consumption emissions.
The regime may be helpful in providing early warning of matters of concern. However, HIPS do not necessarily save the buyer any of the usual costs of purchase.
It is understandable that most sellers will wish to minimise the additional cost of providing a HIP.
Kite Griffin HIPs
Kite Griffin, having been involved in residential property conveyancing for almost 40 years, is a stakeholder with a strong interest in promoting good practice and cost efficiency in the delivery of HIPs.
We have therefore conducted our own research into optimum solutions for the varying requirements of our property selling clientele, and are pleased to offer Kite Griffin HIPs to clients at competitive rates and with a choice of three alternative solutions:
Standard HIP
This contains the compulsory elements only, and is produced at basic cost. It also seeks to protect the seller from avoidable claims.
The Standard HIP can usually be prepared within 7-14 days in the case of freeholds. A leasehold HIP may take longer if it is necessary to procure additional information from third party landlords and/or managing agents, over whom there is often no direct control.
Premium HIP
This is more expensive but goes further than the legal requirements in providing sufficient documentation to enable a buyer to proceed with the purchase without necessarily having to further investigate title or carry out further searches. Again, it seeks to protect the seller from avoidable claims.
The premium HIP may require more time (say 7 to 28 days), even in the case of a freehold. The main reason for the delay over a premium HIP is the need to procure a local search certificate from the Local Authority. Some Local Authorities do not have the resources to provide these quickly. No certificate is necessary for inclusion within the standard HIP.
Enhanced HIP
This goes significantly beyond the compulsory requirements by inclusion of an Home Condition Report, which is intended to give the buyer a clearer idea of any work required to your property.
It will inevitably require more time to prepare and will be significantly more expensive. It may nevertheless be attractive to some sellers in particular circumstances.
Of course, all delays can be avoided with sufficient forward planning. If you are able to do so, you should make arrangements for a HIP in relation to your property at least a month or so before you market it. The law now requires the HIP to be in place before marketing commences.
How it works
Once the HIP has been produced, it will be made available to your selling agent or agents (if agents are used) and to prospective buyers. Under interim regulations, it may remain valid for a year or more, subject to:
- prompt updating when necessary or where prescribed
- renewal of the EPC if there is no sale within 12 months
- your property not being off the market for more than one month
- certain documents being not more than 3 months old when your property is first marketed
Our services
We aim to control the overall cost without compromising integrity or creating risk. For those clients whose priorities lie elsewhere, for example, those seeking inclusion of a loan packaged with a HIP, we are happy to recommend and/or work with a chosen third-party HIP provider.
Some providers will offer "free" HIPs. However, there needs to be caution as to the meaning of this. A truly free HIP will be a considerable advantage, but the "small print" may require you to pay for the HIP, after all, perhaps at a higher cost, in the event of there being no sale.
We aim to meet parameters as to timing and cost by packaging the HIP “in house”. To achieve this, we rely upon well-established search agencies, with whom we have a track record, and Domestic Energy Assessors in the location of the relevant property (sourced from the Government’s own website). By these means, we expect to maintain accuracy and a high level of efficiency in the production of HIPs for those of our clients who do not wish to involve an alternative HIP provider.
We provide a formal written estimate of the cost of the Kite Griffin Standard HIP pack for freehold and leasehold properties respectively, with notes and further information in regard to the procedures involved. View our sample HIP estimate
Detailed information concerning Kite Griffin Premium HIPs and/or Kite Griffin Enhanced HIPs will be given on request. We can also provide assistance in regard to HIPs from third party providers, if required, including those allowing for deferred payment of the cost.
We have a dedicated domestic conveyancing team, ready and willing to answer your queries by telephone or by email. The relevant contact email is: jacqui@kitegriffin.co.uk
Please do not hesitate to get in touch, whether you are an existing client or a prospective new client.
April 2009
