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Frequently Asked Questions
1) What is a Hip?
A set of documents which gives a potential buyer key information about the property for sale.
The seller or the ‘responsible person’ marketing the property has to ensure a HIP is available for potential buyers.
From April 6th 2009 legislation requires that the HIP Index, Sale Statement, PIQ and Evidence of Title (see below) must be available prior to putting your house on the market.
2) What happens if I don’t get a Hip?
Many people think that the maximum fine is £200. This is not true. The initial fine is £200 but if the property remains on the market further fines will be imposed. There is provision to increase the initial fine to £500. If an Estate Agent is acting for the seller and does not arrange a HIP then they could ultimately be the subject of a Banning Order which would prevent them from continuing to trade.
Here is an extract from the regulations;
“Regulation 35 sets the penalty charge initially at £200. It should be noted that payment of this penalty charge does not entitle the person to continue marketing the property in breach of the home information pack duties. To do so could render that person liable to further penalty charge notices. If the person is an estate agent, it also amounts to an “undesirable practice” for the purposes of section 3(1)(d) of the Estate Agents Act 1979, and would render them liable to action by the Office of Fair Trading. This could result in a banning order which would prevent them from continuing to trade (see section 175 of the 2004 Act).”
The above is taken from “THE HOME INFORMATION PACK REGULATIONS 2007:
PROCEDURAL GUIDANCE”.
The full document is available at http://www.homeinformationpack.gov.uk
3) What does a Hip contain?
The following documents must be included in your HIP:
• Home Information Pack Index
• The new Property Information Questionnaire (PIQ), from 6 April 2009
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
• Sustainability information (required for newly built homes)
• Sale statement
• Evidence of title standard searches (local authority and drainage and water)
• A copy of the lease (Leasehold only)
4) How soon can a property be marketed?
The HIP regulations changed on first day marketing from 6 April 2009 to ensure prospective buyers have comprehensive information about a property as it comes onto the market, and that sellers get to see the product they are paying for.As of 6 April 2009, part of the HIP must be in place before marketing of property can commence. The following documents will be needed:
• The index
• Title Documents
• Sale Statement
• Property Information Questionnaire (PIQ)
• Energy Performance Certificate
The “Lite Hip” can be compiled within 48 hours of the Energy Performance Assessment.
5) When don't you need a HIP?
• Properties where there is no marketing (e.g. sale to member of your family)
• Non-residential properties
• Seasonal and holiday accommodation
• Mixed sales (e.g. shop with flat)
• Right to buy purchases
• Sales of portfolios of properties
• Properties not being sold with vacant possession
• Unsafe properties and properties to be demolished
6) How can I pay for my Hip?
You can pay for your pack by credit/debit card over the phone or online on our secure payment portal, we also accept cheques, cash and bank transfers. We also offer a great value 9 months deferred payment option – please ask us for more details of this. For commercial clients we can set 30 day credit accounts up.
7) When will sellers not need a HIP?
Packs are 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.
8) What happens if I take my property off the market?
If a seller takes a property off the market and then puts it back on, the same Pack can be used, provided remarketing starts within a year of it first being marketed.
9) How long will the HIP be valid?
The Evidence of title and the searches cannot be over three months old when a property is first marketed. Energy Performance Certificates cannot be more than a year old. For the latest information on the validity of Energy Performance Certificates visit: www.homeinformationpacks.gov.uk/industry.
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