Change of Estate Agent
If a property has been marketed before a HIP was required and the seller
changes estate agent after a HIP would normally be required, no HIP will be
required as long as the marketing of the property has been continuous.
Duty to hold a HIP
The responsible person (the person marketing, usually the estate agent) must
have a HIP in his possession or under his control. That does not mean he has to
hold a hard copy as long as he has access (electronic) to a copy and can provide
a hard copy within 14 days.
Who owns the HIP?
This would depend on a number of issues. Under normal circumstances, if the
seller requests the HIP from Hallmark and pays for it then the seller would own it.
However, if he has signed a contract with the agent or solicitor saying otherwise
then the terms of that contract would probably take precedence.
Whether the HIP could be moved from one agent to another would, again,
depend on the above.
Does every new owner need a HIP?
Yes, even if they have only owned a property for a short while. In theory they
could have made some additions or alterations to the property.
What constitutes private selling or marketing?
A property is put on the market when its availability, or possible availability, for
sale is advertised or otherwise made know to the public or a “section of the
public” in England and Wales. Family members or small defined groups of people
would not be considered a “section of the public” for these purposes.
Duty to Renew the HIP
Where a property is taken off the market, and then remarketed within one year,
the date of the original first point of marketing is unchanged and the seller will not
be under a duty to renew the pack or any part of it. Packs do not need to be
renewed if marketing stops and then restarts within a year of first being put on
the market. The seller can voluntarily renew documents if they are so out of date
to be of little use to potential buyers.
Properties marketed before 1st August or 10th September
If a relevant property was marketed before a commencement date (1st August or
10th September) and therefore did not need a pack and it is taken off the market,
where an offer is received, the property may be placed back on the market
without a pack provided it goes back on the market within 28 days of the
transaction aborting.
Age of HIP documents
These documents must not be more than three months old when the property is
first marketed
Official Land Registry copies
Official search of the Index Map
Local Search
Water and Drainage Search
The Energy Performance Certificate (EPC) or Predicted Energy Assessment
(PEA) must not be more than 12 months old at the first point of marketing.
No exchange without EPC
Contracts may not be exchanged until an EPC has been made available.
What constitutes marketing?
Marketing begins when an estate agent, acting on instructions from the seller,
starts to tell potential buyers about the availability of a specific property – e.g. by
telephoning a potential buyer.
Required (compulsory) documents
Index
Energy Performance Certificate (EPC)
Sale Statement
Local Search
Water and Drainage Search
Evidence of Title
Additional documents for Leasehold
Additional Documents for Commonhold
Exempt properties
As at today date one and two bedroomed residential properties (temporary)
Tenanted properties
Non-residential properties
Seasonal and holiday accommodation
Mixed sales (e.g. shop with a flat)
Dual use properties (e.g. work live units)
Sales of portfolios of properties
Unsafe properties
Properties due for demolition and redevelopment
New Homes
"New homes built under the most recent building regulations (i.e. Part L of the
2000 Regulations as amended by regulation 17C) are excluded from the HIPs
scheme under the two commencement orders made so far. They will probably
be brought in on 1 January via a separate commencement order."
A Predicted Energy Assessment (PEA) is needed (this can be carried out by any
suitably qualified person). However as soon as the property is physically
complete this must be replaced by a full Energy Performance Certificate (carried\
out by a Home Inspector or a Domestic Energy Assessor).
Providing a copy of the HIP
The responsible person must provide a copy of the pack to a potential buyer if
requested. A reasonable charge may be made for copying and postage. The
pack must be supplied within 14 days of the request or within 14 days of payment
of any copying or postage charge being paid. Electronic copies can only be
supplied if the potential buyer agrees.
There are three circumstances when a pack may not have to be supplied:
• Where there are reasonable grounds to believe the person making the
request cannot afford the property.
• Where it is believed the person making the request is not really interested
in buying the property in question or one like it.
• Where it is believed that the potential buyer is not someone the seller
would wish to sell to.
Estate Agents and a Redress scheme
The estate agent must belong to an approved redress scheme.
Penalties and Enforcement
It is the duty of every local weights and measures authority to enforce the HIP
duties.
The penalty charge has been set at £200.00; this can be repeated if the breach is
repeated.
Repeated breaches could result in a Banning Order being issued.
Enforcement of a breach can’t take place 6 months after the responsible person
ceases to be the responsible person.
In order to make this document easily readable these guidelines are
accurate (as at the date set out below) but for obvious reasons not entirely
comprehensive. Full details of the relevant Legislation will be found in the
Housing Act 2004, The Home Information Pack Regulations (No.2) 2007 and
The Energy Performance of Buildings (Certificates and Inspection)
(England and Wales) Regulations 2007.