FAQs
- What constitutes a complete pack?
- What are the 'required' documents?
- Does the fixtures and fittings form need to be completed in the HIP?
- Will HIPs be subject to VAT?
- When does the vendor pay for the HIP?
- How can I be sure of the quality of the HIP and that I am getting value for money?
- I am a lone female and would prefer a female inspector, is this possible?
- How can I view the contents of the HIP?
- Who is responsible for producing a HIP?
- What is the 14 day rule?
- Can you charge the buyer for a copy of a HIP?
- What about PI Insurance (Professional Indemnity Insurance)?
- Is a HIP prepared by another agency transferable?
- Will there be an increase in the number of houses coming onto the market in the run up to the introduction of compulsory HIPs?
- Will it be a requirement that solicitors will be instructed as the property comes to market/HIP is ordered?
- The majority of buyers will not understand the contents of a HIP. Will a summary be provided?
- Sale from Probate - will they need a pack?
- As an estate agent, can I brand the HIPs in our logo?
- Can I contact House Inspect directly with an enquiry?
What constitutes a complete pack?
A HIP:
- Must include all 'required'(mandatory) documents
- May include 'authorised' (optional) documents
- Must not include any others
The 'required' documents are:
- HIP logo must be displayed on the first page of every document
- Index
- Sale statement
- Home Contents Form (Fixtures and fittings)
- Property information
- Home Condition Report AND/OR Warranty (new homes)
- Warranties
- Home Condition Reports completed on the property in the last 12 months
- Energy performance certificate
- Searches
- Local land charges register
- Records held by the Local Authority - local enquiries
- Drainage and water enquiries
Plus the following additional documents for:
Registered
- Individual register (official copy)
- Title plan (official copy)
Unregistered
- Index map search
- Other documents helping to prove that the seller has the title
Freehold estate in commonhold land
- Commonhold information
Leasehold
- Leasehold information
Does the fixtures and fittings form need to be completed in the HIP?
According to the regulations you can include an uncompleted home contents form. The only requirement for the home contents form is to be included in the pack. A fully completed or partially completed form can be included at a later date. The replies in the home contents form are not legally binding so the vendor has the right to change their mind during negotiations.
Will HIPs be subject to VAT?
Yes, HIPs will be subject to VAT.
When does the vendor pay for the HIP?
We have no upfront charges for the HIP, in fact the vendor does not pay for 6 months or when the property completes which ever is the earliest. There is no interest charged on the HIP value during this period. If the house has not completed after 6 months then the re-payments can be easy to pay monthly installments at a very low interest rate.
How can I be sure of the quality of the HIP and that I am getting value for money?
Our HIPs are prepared by one of the best firms of solicitors in our local area. Coffin Mew and Clover have a well deserved reputation for quality and service. As a purchaser, when you pass the HIP to your solicitors they will know it is a high quality item and be able to get straight on with the important conveyancing. Unlike many of the "factory" HIP providers we do not use personal search agencies as they don't reflect our commitment to providing a quality product.
The home inspectors we use are full time employees of our company. We do not refer out this important report to a nationwide panel of unknown and unchecked home inspectors. We employ the highest quality inspectors who we have trained for over a year. They are all extremely polite, well presented and experienced men and women.
I am a lone female and would prefer a female inspector, is this possible?
Yes, our team consists of men and women, please request this with your agency.
How can I view the contents of the HIP?
We have a bespoke internet viewing site for viewing all contents of the HIP. Agents can view the compiling of each HIP in real time. Purchasers can download or print off information if they desire. All this information is password protected which is given to serious purchasers on request.
Who is responsible for producing a HIP?
The vendor is responsible for producing a HIP only until they instruct an agent. From that point forward the agent is responsible.
What is the 14 day rule?
There are two 14 day rules:
The first states that when a buyer requests a HIP for a property, you must provide them with a hard copy pack within 14 days. If you intend to provide them with a CD, the buyer must approval to receiving it in this format.
If you believe on reasonable grounds that the person making the request is either; unlikely to have sufficient funds, is not genuinely interested or is not a person the vendor would sell to then they you do not have to provide a HIP to them.
The second applies when you are collating the components for a HIP and a delay occurs in getting a particular part. You can then start to market the property only after 14 days of requesting the missing component.
Can you charge the buyer for a copy of a HIP?
The regulations state that you may charge 'reasonable costs' for producing and delivering a personal copy to a prospective buyer. It is up to the agent's discretion whether they charge buyers for a copy HIP.
House Inspect will provide 2 hard copies of the HIP, one of which is given to the vendors and the other is given to the agent. Additional copies can be requested as they require them or simply printed off from the web viewing portal.
What about PI Insurance (Professional Indemnity Insurance)?
Qualified Home Inspectors are required to have PI Insurance. The criteria set by government for the delivery of Home Condition Reports includes the provision of indemnity insurance including an 'insurance of last resort'.
Is a HIP prepared by another agency transferable?
It is not a requirement in the legislation that the pack has to be transferable. The HIP can be transferred to another agency if the buyer has paid for the pack.
Will there be an increase in the number of houses coming onto the market in the run up to the introduction of compulsory HIPs?
An increase in buyers putting their houses up for sale prior to the 1st June 2007 to avoid paying for a HIP is inevitable. There is no requirement for houses put on the market before the compulsory date to provide a HIP.
Agents will be encouraged to list more properties prior to June 2007 in order to build a cash reserve for the latter part of 2007, in case of a short fall of properties for sale. Although HIP may lead to less houses coming onto the market, many of these are likely to be the less committed vendors who may not go through with the sale.
Will it be a requirement that solicitors will be instructed as the property comes to market/HIP is ordered?
There is no requirement for a solicitor to be instructed when ordering a HIP or placing the property on the market. Purchasers and vendors are free to use which ever solicitor they decide upon.
The majority of buyers will not understand the contents of a HIP. Will a summary be provided?
We think a summary of the HIP is a good idea, but at present it can not be included in the HIP. We are making progress with the ODPM to get this reversed.
Sale from Probate - will they need a pack?
HIPs will be required for Probate properties as they will be advertised on the 'open market'.
As an estate agent, can I brand the HIPs in our logo?
Of course, they can be branded in any logo or style you like, just supply us with the files and we shall do all the rest.
Can I contact House Inspect directly with an enquiry?
Certainly, please call our fully trained customer liaison team on 0845 838 6008, we are available from 8am-8pm Monday-Friday and 10am to 4pm Saturday and Sunday. Alternatively you can e-mail on info@houseinspect.co.uk