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FAQS

The following Frequently asked Questions (FAQs) are arranged into a number of catagories. You can browse through the whole list, or click on one of the links to skip ahead to any section.

1. About HIPs

1.1 What is hipsonline?

Hipsonline is a new service to provide Home Information Packs for anyone who wants to sell their home.

1.2 What is a Home Information Pack?

A Home Information Pack (or HIP) is a document that contains certain legal information about your home, which potential buyers will find helpful when considering whether to purchase the property. This will include, for example, Proof of Title, Legal Searches, Planning Certificates, etc.

All Home Information Packs will also include a Home Condition Report (HCR), which is a summary report about the physical condition of your home. It's very similar to a Homebuyers Report, which a lot of purchasers already have carried out before completing a purchase. The Home Condition Report gives a reliable idea of the condition of the property, and any repairs that might need carrying out.

It's all the information that purchasers require to complete a property purchase at the moment, except with a Home Information Pack you are providing it up front.

1.3 Why are Home Information Packs needed?

The current home buying process is poor in many ways. For example, around 40% of house sales currently fall through because interested buyers usually have to make an offer with no information about the legal status of the property, and no reliable advice about its condition. A great deal of time and money is wasted with transactions that fall through at some point.

Normally, the legal information and a survey report only become available after the parties have exchanged, and have already committed time and money into the sale. Sales that fall through later on usually do so because of something unexpected that comes up in the legal searches or the survey. Currently around 40% of transactions are aborted for this reason, which means the time and legal fees are wasted, and the whole process starts again.

It's generally accepted that most of this wastage and hassle can be avoided if all the legal information, and a summary report about the properties condition, is available to any potential purchaser up front. This way, the sale can proceed on an informed basis, and avoid any nasty shocks later on.

1.4 What exactly will a HIP contain?

The details are still being finalised by the ODPM, however it's likely that a HIP will contain the following items:

A Legal Pack, which will include all of the following documents:
A Home Condition Report (or 'HCR'), which will include:
- A summary report on the condition of the property, and identifying any necessary repairs and further specialist testing (e.g. electrical, gas or oil installations, plumbing, heating, etc.)
- A SAP Assessment, which assesses the energy efficiency of the property and gives it an Energy Rating.

1.5 Do all houses need a Home Information Pack?

No, but most will. HIPs will normally be required for all domestic property. Again, details are being finalised but the main exceptions are expected to be some leaseholds and very low value properties.

2. What do I need to know if I'm a... Vendor (or seller)?

2.1 Do I need a Home Information Pack if I want to sell my house?

You'll need a HIP if you want to sell your house on the open market (e.g., through an Estate Agent) after 1st June 2007. If you're selling your house privately (i.e. you're not publicly marketing it) you won't need a HIP by law, but it's still recommended.

2.2 Must I have a Home Information Pack by law?

Not yet. HIPs are voluntary at the moment, but they will become compulsory for most properties in June 2007. Its still a good idea to think about having a HIP if you are thinking of selling your property though - read on!

2.3 How do I get a Home Information Pack?

Most Estate Agents will arrange a HIP on your behalf when they take on your house to sell.

If your Estate Agent can't provide a HIP, or you just want to arrange your own, that's no problem. We'll provide your HIP quickly and easily, with no fuss.

2.4 How much does a Home Information Pack cost and who pays for it?

A HIP will cost around £800 for a typical family home when they become compulsory in June 2007. This will obviously depend on the location, size, and value of the property, but this figure should be about right for most homes.

In the meantime, we're currently offering Home Condition Reports for Estate Agents and sellers who want the advantage of an HCR to offer interested buyers. To encourage take-up we're doing these at cost, which is around £250 - £300 for a typical family home.

It's up to Estate Agents to decide whether they recover the cost from you, but most Estate Agents will recover the HIP fee from you when the sale completes. Other Estate Agents might include the cost within their normal fee.

2.5 If my agent or I is paying for the pack, will a vendor rely on it to be impartial?

There's no reason why they shouldn't. The legal information is exactly the same as the information the purchaser's conveyancer will obtain at the moment, and it's prepared from exactly the same resources. The legal information should also be checked by your own conveyancer anyway.

The Home Condition Report can only be done by an independent Home Inspector, who must complete a stringent assessment and licensing procedure before they are allowed to do Home Condition Reports. There are a lot of stops and checks in place to ensure that all Home Inspectors are completely impartial when preparing the HCR.

One of the main reasons that HIPs have been delayed several times already is to ensure that the Government and the major consumer groups are satisfied with the professional standards and impartiality of Home Inspectors. The majority of these bodies are now satisfied and are firmly behind the HIP scheme. (You can read the WHICH report on Home Information Packs here)

2.6 I want to sell my property now. Should I have a Home Information Pack?

There's no legal requirement to yet, but having a HIP available to potential sellers gives you a significant advantage over other any other properties your buyer might be looking at.

A number of Estate Agents have been operating a voluntary HIP scheme for several years, and there's no doubt it has helped most sales go much more smoothly. More Estate Agents are now adopting this practice, partly in anticipation of the new law, and there's no doubt that having a HIP makes a property much easier for them to sell, as they can give an interested buyer the necessary information up front.

Hipsonline are already providing Home Condition Reports (HCRs) to interested Estate Agents and sellers, at a discounted cost. We'll soon be offering the Legal Packs too.

2.7 My property needs a few repairs. Won't a Home Information Pack put them off?

Not usually. Most buyers who see a property in poor repair will already know that some work is needed, and will find an independent HCR very helpful in accurately assessing the repairs that need to be done.

Don't forget that under the current system, a purchaser will often put in an offer before even arranging their own survey, and the whole sale process wait a few weeks for that to come through. These delays, and any problems which might be found, were one of the most significant reaons behind the 40% failure rate under the current system, and have prompted overhauling the process to the new system.

In many ways, a HIP is a much better solution for properties that need some work doing.

2.8 Do all properties need a Home Information Pack?

By law, most residential properties will need a HIP from 1st June 2007.

2.9 Does it include a valuation?

No. The law says a HIP will not include any kind of valuation, including an Open Market Valuation (how much the property is worth to buy), or an insurance reinstatement valuation (how much it should be insured for). This is mainly because a HIP is designed to be a factual document that can be relied on for a reasonable period of time, whereas property values change according to the market.

2.10 How long will my home information pack be valid for?

Technically, some parts of the HIP are valid indefinitely, however this raises certain problems. For example, a HIP would still technically be valid after 100 years! It's therefore likely that most Estate Agents and conveyancers will accept a HIP for about 12 months. Other components will be valid for 3 or 6 months and will need updating after this time.

2.11 How do I order a Home Information Pack?

You will be able to order a HIP online via this website when the service is fully launched in 2007. In the meantime, please contact our offices on 01954 250302 if you wish to arrange a HIP before then.

2.12 I have some more questions. Who can I contact?

3 What do I need to know if I'm an... Estate Agent?

3.1 Who orders a HIP?

Most Estate Agents expect to order a HIP on behalf of new vendors. If you prefer your vendors arrange their own HIP, that's no problem they can order their HIP from us directly too.

3.2 How do I order a HIP?

Ordering a HIP is quick and simple. Once you're registered with us, simply enter the property details and submit your order. We will arrange for your HIP to be delivered very shortly. That's it!

3.3 How long will it take until I receive the HIP?

Fast turnaround times are critical and our service is designed with turnaround as one of the highest priorities. We are currently expecting to deliver completed packs within 5-10 working days, depending on government requirements that are currently being finalised, however we're also looking at ways to accelerate this and will deliver a faster turnaround time if at all possible.

3.4 How much will a HIP cost?

We are currently expecting a HIP to cost around £800. Many details of the HIP are still being filled in at government level, and the actual cost probably won't be known until 2007.

The cost of the Legal Pack is likely to be fixed, however the cost of the HCR will vary with size and/or market value of the property. The cost of any HIP will be calculated when you enter the property details and before you confirm the order.

3.5 Who pays for the HIP and when?

Many Estate Agents will cover the HIP fee on behalf of the vendor, and recover this cost from them upon completion of the sale, possibly incorporating it within their fee. Others will charge the vendor up front or ask the vendor to arrange their own HIP. We don't mind whether you or your Estate Agent pays the HIP fee.

If you pay the HIP fee on behalf of the vendor, we'll ask for payment after 90 days, which gives you a reasonable period to sell the property and release the equity. If the vendor pays the HIP fee direct, we will require a secure online payment at the time of instruction.

Alternatively, we also expect to offer a 12-month interest-free consumer credit agreement to vendors, which will help them to avoid any up-front payments before marketing the property.

3.6 What if the property doesn't sell after 90 days, or the vendor withdraws the property?

We will still require payment after 90 days, and the vendor will still have a valid HIP should they wish to sell their house in the future.

3.7 I want to use my own Home Inspectors and/or Conveyancers, or I have to use a particular company or individual?

That's no problem. Simple nominate your preferred supplier to your account and we'll offer them the instructing work. If they don't accept the instruction for any reason, or can't deliver within the required timescale, the instruction will be offered to the next available supplier.

You will be able to save as many preferred suppliers as you like in this way, and our system will remember them for your next order.

3.8 It sounds ideal. What do I do next?

If you're interested in our service and would like some more information, please let us know by registering here. We'll arrange to visit you and show you the the service in more detail. There's no obligation or cost.

4. What do I need to know if I'm a... Home Inspector or Surveyor?

4.1 What's a Home Inspector?

Home Inspectors are the new profession who will be responsible for preparing Home Condition Reports. The role is very similar to surveyors who undertake Homebuyers Surveys under the current system. The main difference is that Home Inspectors must be licensed by the Office of The Deputy Prime Minister (ODPM) to be able to carry out Home Condition Reports.

4.2 Do I have to be a qualified surveyor to become a Home Inspector?

No. Anyone can become a Home Inspector and the assessment procedure is open to anyone. Surveyors who've got experience in this kind of work will qualify as Home Inspectors very quickly and easily, but anyone can train to become a Home Inspector.

It's generally accepted there will be a shortage of Home Inspectors when the new scheme starts. There are only around 25%-30% professionals (mainly surveyors) in the industry at the moment with the necessary experience to qualify as Home Inspectors under the new system.

4.3 What if I'm not already qualified or experienced?

There will be many more opportunities for people in related or unqualified roles to become Home Inspectors. In fact, it's expected that currently unqualified/ inexperienced people will form the majority of Home Inspectors in the future. Suitable people might include any of the following:

Non-residential Surveyors, Architects and Engineers.
Building Control Officers.
Technicians, Juniors & Unqualified Professionals.
Building Contractors, Site Supervisors, Estimators, Clerk of Works etc.
Construction Trades (eg Bricklayers, Carpenters, Plumbers etc).
Anyone else with knowledge and experience of domestic construction.

These groups will often have all the necessary technical knowledge and skills, but will usually need some first hand experience and top-up training in carrying out residential surveys and preparing the reports.

We currently carry out a signficant volume of residential surveys under the current system. We would encourage you to join us for work-shadowing and other useful experience to ensure you gain the necessary experience in residential surveying before your assessment.

4.4 How do I qualify as a Home Inspector?

You'll have to be assessed by one of the four awarding bodies who have been approved by the Awarding Body of the Built Environment (ABBE). Any of these bodies can assess you for qualification but some of them are expensive (from around £1500), especially if you're not already a member with them or a qualified surveyor.

4.5 Can I qualify as a Home Inspector with hipsonline?

We're offering a work shadowing and experience programme to anyone who joins our network of Home Inspectors. The structure of the scheme will depend heavily on your qualifications and experience to date, so we'll need to talk to you to establish your current situation. You'll need to contact one of the awarding bodies such as the Association of Building Engineers to register for your assessment.

4.6 Is there likely to be much demand for Home Inspectors?

Yes. There will be a national demand for around 7,000 Home Inspectors from June 2007. Its almost certain there will be an initial shortage which will last for some time, until enough Home Inspectors are trained and assessed to meet the expected demand.

4.7 I'm interested in becoming a Home Inspector. What should I do next?

You'll need to register here, at no obligation or cost. We'll contact you straight away and establish your best route to qualification, based on your current experience and qualifications.

To help with you gain the necessary residential experience we'll give you all the work shadowing and other experience that you need. In return, all we ask is that you complete a minimum amount of work from our panel after you qualify.

4.8 How much work will hipsonline offer me if I join your Home Inspectors Panel?

We're confident we will be able to offer our Home Inspectors as much work as they want from June 2007, and probably well before that during the trial period from June 2006. We're currently working hard to ensure that we have just the right number of Home Inspectors in the locations we cover. This way, we can ensure you'll receive a regular supply of quality instructions, at the right rate and locations.

4.9 Are your Home Inspectors Full Time/ Part Time/ Employed/ Freelance etc?

We know that one size doesn't fit all and we're very happy to take on Home Inspectors in a variety of ways. We're happy to welcome you onto our panel whether you employed or freelance, full time or part time, according to your own needs.

4.10 I'm interested in joining your Panel of Home Inspectors. What should I do next?

Please let us know by registering here - there's no cost or obligation. We'll contact you immediately and arrange for you to be added to our panel, and help establish your best route to qualification if you're not already enroled on an approved programme.

What do I need to know if I'm a... conveyancer or solicitor?

5.1 How will the reforms affect my business?

There's not like to be any significant change in workload for the conveyancing profession as a whole, but many firms are likely to have to adapt their existing practices and methods to integrate with the reforms. The industry shift towards real-time tracking systems is likely to continue and eventually become the indsutry standard.

5.2 How will hipsonline provide the legal components of the HIPS?

That's where we need you. We are currently establishing a network of key conveyancing partners to work with each of our offices at a local level and to provide the legal packs.

5.3 My firm is going to supply our own HIPS. Why should we partner with hipsonline?

We are very happy to work on a reciprocal arrangement of providing HCRs to your firm who provide legal packs for us.

5.4 I'm interested in becoming one of your key partners within an area. What should I do next?

Please let us know by clicking here - there's no cost or obligation. We'll contact you immediately to discuss things further and look forward to welcoming you onto our panel.

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