Changes to the HIP
Changes introduced on 6th April 2009 affected anyone involved in buying or selling homes in England or Wales.
There were three key changes to the HIP
- The removal of temporary first day marketing
- A Property Information Questionnaire, completed by the seller, must be included in the HIP, and
- HIP providers can no longer use insurance to cover missing data in personal searches
The End of Temporary First Day Marketing Exemption
Originally, a HIP was supposed to be in place before a property went to market.
Because all the required documents in a HIP can take some time to gather, an allowance made for home sellers’ agents to market a property. The hope was that the property professionals would get one in place as soon as possible.
Therefore from 6th April 2009 marketing of a property cannot begin until the HIP is available and all the required HIP documents commissioned and provision for payment made.
The following documents are a minimum requirement before marketing can begin:
- Index
- Property Information Questionnaire
- Energy Performance Certificate or Predicted Energy Assessment
- Sustainability Certificate (new homes only)
- Sale Statement
- Land Registry Documents
These documents form the basis of the marketing pack produced so that home owners can market their property.
The remaining documents made available as soon as practical. Some searches take longer for various legitimate reasons which would delay a sale regardless of the HIP regulations.
Marketing includes
- Sale boards placed outside properties
- Newspaper advertising
- Web site promotion
- Identifying the property and its location
What about the new Property Information Questionnaire?
The PIQ is for the seller to fill in and must be included in the pack before marketing of a property begins.
The intention of the PIQ is to provide prospective buyers with a helpful checklist of information as they view the property. The intention is not a replacement for enquiries made during the conveyancing process, but should reduce the number of surprises further down the line as part of this process.
The questionnaire is quite short, if you are un-able to answer a question – ask. There are not many people who buy houses frequently to know all the ins and outs.
What about properties on the market before 6th April 2009?
Where a property was on the market before 6th April 2009 and the seller changes agents, there is no requirement to update the existing documents in the HIP or for the PIQ to be included. However, the new agent will continue to be responsible for ensuring that the pack complies with the HIP regulations.
