Home Information Pack and EPC
A Home Information Pack (HIP) is a package of documents that provide information to prospective buyers who are interested in purchasing a property. These documents include:
- Energy Performance Certificate
- Local Authority Searches
- Title Documents
- Guarantees
- Sale Statement
- Building Insurance Policy
These packages are now mandatory for the sale of home with three bedrooms or more (home with four bedrooms or more came into effect 1st August 2007 and 3 bedroom homes 10th September 2007).
What is the Benefit of a HIP?
The seller of a home with more than three bedrooms does not have the option of whether or not to provide a HIP, as law under the provisions of the Housing Act 2004 requires it. However, both buyers and sellers are anticipated to benefit since the greater disclosure of information may safeguard against abortive sales.
What is an Energy Performance Certificate?
An Energy Performance Certificate (EPC) provides the homes performance rating in terms of energy efficiency. This rating allows buyers to assess the costs associated with the home’s energy consumption and the overall environmental impact of their purchase.
Some believe that the environment will be the ultimate winner from this mandatory inclusion of an EPC. It is hoped that buyers will start to see good EPC ratings as a selling feature for a home, which will encourage sellers to take environmentally friendly steps towards improving their rating.
Moreover, the EPC also provides buyers with information on how to improve the home’s energy efficiency based on its current rating. The Energy Saving Trust estimates that by following these proposals, new home buyers can save significant amounts of money each year and also reduce the overall quantity of CO2 emitted in the UK.
What Happens If I Sell my Home without a HIP?
Although the cost of a HIP is relatively low when considering the overall cost of selling a home, there are still some sellers who will hope to save money by foregoing this requirement. Unfortunately, those who fail to provide a HIP to their buyer, or who provide an incomplete package, will not only have to pay the cost of the HIP, but also a hefty fine.
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