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HIPs Documents

HIPS

HIPS Documents from PROPERTY ADVICE BLOG

Home Condition Report  - This voluntary report describes the property in terms of its physical condition, and can be used as a legal document which buyers, vendors and lenders can refer to. This accurate report can provide invaluable information which sellers can use to upgrade or repair their property before they put it on the market. Equally, buyers can use the report to understand the physical state of the property from the early stages, reducing the risk of discovering problems further down the line. Lenders often use the Home Condition Report to help them make informed decisions about property valuation, saving time and money in terms of detailed inspections.

The value of the Home Condition Report can be seen by all parties, and is currently under Government promotion and development. Both communities and the local Government are working together with stakeholders, so that sellers choose to include this document as part of the HIP.

Who can prepare my Home Condition Report? - Home Inspectors are responsible for creating Home Condition Reports. Each inspector’s credentials should include a qualification at NVQ Level 4, as well as in-depth knowledge and understanding of residential building construction and defects. Home Inspectors should have expertise on a range of properties as listed in the approved National Occupational Standards for Home Inspectors.

HIPS – Compulsory Documents - Home Information Packs must always contain:

•    A Home Information Pack Index
•    An Energy Performance Certificate
•    Evidence of Title
•    Sale Statement
•    Standard Searches
•    Appropriate information on leasehold and common-hold sales.
•    A newly built home must hold a rated or interim certificate which adheres to the Code for Sustainable Homes or shows the property meets current building regulations.

HIPS – Optional documents  - You may find that the HIP also contains the following list of items:

•    A Home Condition Report
•    Home Use/Contents Forms
•    A Legal Summary
•    Additional Leasehold and Common-hold sales information
•    Other documents 

Other Documents  - If you’re a seller who wants to speed up the sale process, it is advisable to include guarantees and warranties for work already carried out on the property as well as non-standard searches. Common searches include rights of way, environmental hazards and ground stability. These searches allow buyers to understand the property and its land from the beginning, and can save all parties time and money in the long run.

Home Use/Contents Forms  - These documents give buyers and sellers a range of information on a number of issues including property boundaries, shared resources with neighbours, notices, services and planning permission. Some sellers may also include a list of fixtures and fittings which are included, excluded, or are subject to negotiation in the sale process.
The Law Society at www.lawsociety.org.uk provide guidance for solicitors, helping them to create these forms.

Legal Summary  - HIPS should be easy to understand for any buyer, seller or lender. In terms of the pack’s legal content, there may be some documents which are less straightforward and technical. A legal summary should therefore help buyers to understand the legal documents, although advice from expert advisers is often beneficial.

If you want information on HIPS, or guidance on how to compile your own pack then  browse through some of Property Advice Blog’s HIP links today.