Home Information Pack (HIPs)

From 14th December 2007, if you want to sell your property you will now need a Home Information Pack. You can no longer place your property on the market in its absence. If you do, you could face a fine of up to £200.00 per day!

What is a HIP?

A HIP is a set of legal documents relating to the property. For a freehold property, the HIP must contain an Index, Energy Performance Certificate, Sales Statement, Evidence of Title and standard searches. If the property is leasehold, all the above documents must be included in addition to the Lease.

Where can I get a HIP?

There are three main HIP providers.

Estate Agents: Some estate agents offer a free HIP but you need to be careful.  Always remember there is no such thing as a free lunch so why would there be with a free HIP!  Some estate agents will add the cost of the HIP onto their commission.  Should you decide to remarket with another agent, you may not be able to transfer your HIP or you could pay an inflated price for the HIP when you terminate the agreement. You may not be able to use the HIP for marketing on a multiple agency basis. 

Pack Providers: Many provide HIPs but that is all.  Bear in mind that they are not legally qualified and sadly, many do not understand the very content of the pack that they provide!

Solicitors: We have been providing property related services for many years and are ideally placed to provide HIPs.  There are many advantages to using a Solicitor. 

Expertise.  Unlike a Solicitor, your HIP provider cannot advise on legal issues surrounding your HIP and/or your property. It makes sense to order your HIP, which largely consists of legal documents from a professional who is qualified to prepared and interpret the information that it contains. Legal advice, sought at a later stage could mean additional legal costs incurred later on.

Conveyancing. Unlike other pack providers, we can also undertake the conveyancing process avoiding duplication of effort and delay. By involving two separate parties, one to do the pack and then a solicitor to do the conveyancing, the benefits of having a HIP are lost with an inevitable increase of costs and time.  We can provide you with a streamlined conveyancing procedure.

Regulated. The Solicitors Regulatory Authority regulates solicitors.  This regulation ensures the quality of service that we provide and the highest possible levels of protection for you.

Insured Some have overlooked the fact that legal liability will attach to those who supply HIPs and the information that is contained in the pack. As a firm of solicitors, we have appropriate legal indemnity cover.

How much will it Cost?

We offer a range of HIP products to suit your specific requirements.  Prices start from only £299 plus vat. You can choose any one of our products and pay for our costs upfront or defer payment for up to nine months or until completion whichever is the sooner. If you choose to instruct us to handle your conveyancing discounts are also available.  Details are available upon request.

Our HIP Products

Our range of products is designed to provide you with an agreed level of service at an affordable price with maximum flexibility. All our HIPs will be provided to you in soft copy. Hard copies are available at additional cost.

BRONZE PACKAGE.  This is one of our basic products, which contains all of the compulsory documentation required by law.

SILVER PACKAGE.  One of our most popular.  By including authorised documents, you will be providing your buyer with a comprehensive HIP.  This should enable a potential buyer to objectively assess whether s/he wishes to buy your property.  By giving more information at the beginning, the chances of renegotiating a price reduction during the transaction is far less likely, with the chances of the sale progressing to completion far greater.  This product would suit sellers who require any early sale, with minimum delay to ensure faster completion times.

GOLD PACKAGE.  This would ideally suit sellers who own higher value properties.  The Home Condition Report (HCR) contains information about the physical condition of the property. The HCR is a report on all parts of the property, meaning that potential buyers can understand the condition of the property before making an offer and where repairs are required, the extent and possible costs of those.  If an HCR is included, offers can be made based on the facts about the property.  The sale is less likely to fall through or the price renegotiated. 

£299 plus vat		£350.00 plus vat		£POA
BRONZE PACKAGE		SILVER PACKAGE		GOLD PACKAGE
Index of Documents contained in the pack Energy Performance Certificate Sales Statement summarising the property & terms of sale Evidence of Ownership Local Authority Search Official Water & Drainage Search   Copy Lease & leasehold information if applicable.		Bronze Package PLUS Sellers Property Information Forms Fixture Fittings & Contents Form Guarantees/Warranties Planning Permissions/Building Regulations Documents		Silver Package PLUS Home Condition Report

So, when you decide to sell your property make sure that you first contact us for your one - stop property service. For further information please call us today on 020 8661 0000 or email aa@arorabailey.co.uk and we’ll be happy to help.