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Generic Questions:

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Questions specific to really HIP:

Generic Questions:

What is a HIP?
A HIP is the package of information that must be prepared before a residential property can be offered for sale.  A HIP for a freehold property will contain up to 100 pages of information comprising:-

  • An index (i.e. a list of the contents of the pack)
  • A Sale Statement (summarising terms of the sale)
  • Evidence of title.
  • Standard searches (i.e. Local Authority enquiries and a drainage and water search)
  • An Energy Performance Certificate
  • Where appropriate, a new homes warranty

A typical HIP for a leasehold property will contain more information. In addition to the above list it must include a copy of the lease. Optionally, until June 2008, it may also include Information on service charges and Information on insurance. After June 2008, these items may become compulsory

The documents listed above are mandatory.  In addition, the following “authorised documents” may be included in a HIP on a voluntary basis.

  • A Home Condition Report
  • Guarantees and warranties
  • Other searches

How long will it take to produce a HIP?
It will typically take one to two weeks to obtain the necessary documents.  This means that the finished HIP will usually take two to three weeks to produce.

Can the property be offered for sale before the HIP has been produced?
During the period covered by the temporary regulations the property can be offered for sale once the HIP has been requested.

What happens if mandatory documents are unobtainable?
The responsible party must continue to take all reasonable steps to obtain the missing document or documents and must produce an updated HIP if and when the additional documents are obtained.

Who is responsible for preparing a HIP?
If a property is being marketed by an estate agent then the agent will be responsible for ensuring that a HIP has been produced.  If a property is being offered for sale privately, then the obligation to produce a HIP falls upon the vendor.

Will the HIP include a survey?
For the time being, the HIP does not have to include any sort of survey and most HIPS will not include one.

Will the HIP include a valuation?
For the time being, a HIP will not include a valuation.

Who will pay for the HIP?
Some estate agents will pay for the cost of producing the HIP and recover it through charging higher fees.  Other estate agents will ask the vendor to pay for their own HIP up front.  Some agents may charge a mark-up on the price of the HIP.  If a homeowner is selling a property privately they will have to pay the cost of producing the HIP themselves.

Are there any exceptions to the HIP legislation?
For the time being the legislation only affects properties that are sold in England and Wales.  Properties in Northern Ireland and Scotland are excluded although Scotland will be introducing its own similar legislation in a couple of year’s time.

The legislation only applies to residential properties.  Commercial properties, property portfolios, tenanted properties and most farms are exempt.

A homeowner may also sell a property to a member of their immediate family without preparing a HIP.

If you are looking to purchase a property under the Right to Buy scheme a HIP will not be required.

A HIP must be produced in all other cases and these will comprise the vast majority of all property sales.

Who has the right to view the HIP?
All prospective purchasers have the right to view the HIP.  They may choose to read a hard copy of the pack or they may choose to look at an electronic version of the document either at the estate agents offices or via the internet.  HIPS will be accessed electronically using a secure PIN number to prevent unauthorised people from viewing the document.  Prospective purchasers also have the right to request their own hard copy of the HIP to take away with them.  However, a vendor or their estate agent is permitted to charge for the reasonable cost of producing a hard copy version of the HIP.

Who will interpret the HIP?
The HIP will include a number of legal documents including searches, evidence of title and for a leasehold property, a copy of the lease.  The great majority of prospective purchasers will need professional help to interpret these documents.  Vendors who are marketing their own property privately have no obligation to help prospective purchasers to interpret the HIP.  They can just advise them to ask their solicitors. 

Estate agents will be expected to help people to interpret a HIP although many will not have enough legal or technical knowledge to be able to do so.  In practice, the reply to most questions is likely to be “you will have to ask your solicitor”. 

Will the purchasers still need to instruct a surveyor?
Initially at least, the vast majority of HIPS will not include a Home Condition Report.  If the purchaser wants a survey they will have to commission their own.

How long is a HIP valid for?
A HIP remains valid for as long as the property remains on the market, however long it takes to find a buyer.  The searches are only valid for six months and if a sale has not been achieved before then, the purchaser’s solicitors will insist that new searches are obtained. 

What happens if the property is taken off the market?
If a property is taken off the market for more than 12 months then the HIP becomes invalid and a new one will have to be produced before the property can be marketed again.

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Questions specific to really HIP:

Can really HIP help me promote my HIP service?
You have a choice of a white labelled website, point of sale marketing, consumer editorials and advertising templates. These can include really HIP branding, joint branding or just your own – whichever you prefer.

Can I use my local conveyancer/solicitor?
Of course. really HIP is extremely flexible which means you can choose to work with a local conveyancer of your choice or, alternatively, use Hammonds Direct and its regional panel.

Do Really HIP insist on contracts?
No. With really HIP there is no tie-ins or strings attached.  You can work with us ongoing or on a job by job basis.

Do Really HIP insist on exclusivity?
No. You can work with as many providers as you like, but we’re confident the quality and delivery of our service at a competitive price will make us the obvious choice.

What management/tracking information will I have access to?
You can see all your current cases as a summary, with drill-down capability to each case for specific progress details such as request and completion date, progress milestones and so on.

There will be appropriate levels of access to management information – for instance, there will be a top-level log on, lower levels with less access and so on.

What experience and proven systems does really HIP have to manufacture HIPs?
Hammonds Direct have unrivalled systems and 3 production centres with over 400 experienced employees. This experience together with the tried and tested technology means really HIP is well placed to deliver your HIPs fast and at a low price.

How long will it take to produce a HIP?
Unlike other providers, we will be manufacturing every HIP ourselves rather than relying on third parties. This means we can guarantee a fast and reliable service.

What format will the HIP be in?
That’s up to you. We offer

  • Download from our site
  • Paper

Who will chase any delayed items?
It’s managed centrally, with automated flags warning of outstanding documents and prompting actions.

Will I have to fill out complex forms to request a HIP?
No, the online HIP request can be completed in a few minutes. The only information required to get a HIP started is the sellers details and some details of the property.

Yes, to do this you will need to join our panel. The set up is much the same as that for surveying work. We will give you all the information you require to join the panel on initial registration.