Home information pack (HIP), just as the name suggests, is the information pack containing several dossiers giving specific information about the house. The home information pack was made mandatory from the year 2004, for all house owners to produce before putting up their respective properties for sale. The rule, started by the UK Government, aims at facilitating complete and total information for the buyers about the properties they are interested in, while also helping them in making the final decision in the end. The other motive behind implementing the Home Information Pack is to facilitate in the home transactions, simplifying the job for the buyers as well as the home owners.
While we know what home information pack is now, let us focus on the various other aspects that are associated with this information pack. Since it has been mandatory for a seller to produce a home information pack at the time of selling, failing to do the same would cost him up to £200 as penalty. Then again, it is not necessary for the home owner himself to provide the HIP; rather the real estate agent can also do the same on behalf of the seller. Housing Act 2004 also covers all the properties, which consist of more than three bedrooms. Furthermore, for all those who are eager to get their property moving up the property transaction shack, inclusion of the Property Information Questionnaire will prove to be a big help as it will assist the buyers and sellers alike.
Before the confusion reigns on, let us mention a few requirements of the Home Information Pack. Some of the documents that are compulsory to be included in the HIP before commercializing the property are: Sales Statement, Evidence of Title, Energy Performance Certificate, Information on common-hold and leasehold sales, nil-rated certificate (only in case of newly built building), complete information on the drainage system and local authority and latest home inspection report. While these above mentioned documents were compulsory documents that required their presence in the HIP at all costs, there are a few optional documents too that can be included in the HIP. Some of the options might be compulsory in case the property is held under a lease. These optional documents are: details, along with the receipts of service charges, details of payments, installments and insurance policies, contact details of the property owner or the property management company.
A Home Information Pack is, hence, with all the above mentioned information inclusive, a very important and detailed package of the documents required by the buyer to assume trust in the property. Some may argue that the HIP only adds on to the unnecessary expenses in the list. However, the Home information pack is not very expensive to be maintained or prepared. Depending on various factors, the cost of the HIP would vary, usually ranging between £300 and £600. There are several HIP consultants or the providers of the home information pack, who can guide you as to how to proceed with the preparing of the HIP.
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