Basic HIP Rules/FAQ

Estate Agents

Please see below some of the rules set out by the CLG (Communities and Local Government):

Before you are able to commence marketing a property, you will need to order a HIP (Home Information Pack). This is classed as “First Day Marketing”. This is only temporary and will end on 31st May 2008.
There are however some properties that are exempt from HIPS (please see below for more information).
Upon request by a potential buyer, you must be able to provide a copy of the pack, unless

The person making the request could not afford the property in question
The person making the request is not really interested in buying the property
The potential buyer is not a person to whom the seller would wish to sell the property.

It is your responsibility to ensure the documents within the Pack are authentic
If you are marketing a home with a HIP, you must have joined an approved redress scheme, refusal may lead to penalty charges (currently set at £200) and could be treated as undesirable practise under the Estate Agents Act 1979. If you continue to refuse to join, this could lead to the OFT to conduct a fitness test and may lead to a banning order being made under the 1979 Act. For further information, please see Office of Fair Trading Website. Here are the approved redress scheme’s:

1st January 2009

There must be a HIP available when marketing starts and certain documents must be in the HIP. Marketing with an incomplete HIP may take place if documents have been requested and it is expected that they will become available within 28 days of the start of marketing. Where documents are missing, this should be noted in the HIP Index and reasonable efforts should be made to obtain them as soon as possible. This exemption only covers the following documents:

Searches
Leasehold and Commonhold information
Evidence of Title (for unregistered properties only)

Properties Exempt from HIP rules.

Here is a list of some of the properties that do not require a HIP:

Properties where there is no marketing (e.g. sale to member of vendors family)
Non-Residential properties
Properties subject to condition limiting their use to occupation for less than 11 months per year OR holiday accommodation
Mixed sales (e.g. shop with flat)
Right to buy and similar sales
Sales of portfolios of properties
Properties not being sold with completely vacant possession
Unsafe properties and properties to be demolished.

For more information on this please refer to
http://www.home-information.info/20080116/index.cfm

Home Owner

Frequently Asked Questions.

Here is a list of some of the most Frequently Asked Questions. Should you have a question that you are unable to find the answer to in our site, please do not hesitate to contact us.

How much will my HIP cost?

£349 + VAT - For a basic Freehold, Registered HIP which include the mandatory components
This price may be discounted directly from one of our Introducers, please contact Hips Etc for details on local Estate Agents or Solicitors introducing to Hips Etc

How can I pay for my HIP?

Our current payment options are up front by Debit / Credit Card or Cheque. Please note if payment made by cheque, the hip process will not commence until funds are cleared. Also Hips Etc do no accept American Express Cards.

If my property was only the market before Hips came into force when do I need to order one?

At present, there is no set “Drop Dead Date” detailing when all properties on the market before Hips will need to obtain one. All properties as stated on the market before the relevant dates, at present will not need to order a HIP provided they have been continuously marketed:

1st August 2007 for 4 Bedroom properties and above
10th September 2007 for 3 Bedrooms properties
14th December 2007 for 1 and 2 Bedroom properties

Can I market my property without a HIP?

No, at present the rules are that you cannot start marketing your property without commissioning a HIP. If you do, it is classed as an offence and there is a minimum fine of £200 per instance which the Government are considering increasing to £500, this could be to both the Estate Agent and the Vendor. If the Estate Agent regularly markets properties this way, they could risk receiving a banning order by the Office of Fair Trading