Will I need a HIP if I sell now?
Properties on the market prior to the 1st August which remain on the market after that date will not need a HIP. This will not be for an indefinite period as the government have stated they will introduce a “drop-dead” date at which point properties that came onto the market prior to August will have to commission a Pack, to be set as and when it is seen as prudent to do so.
Who will produce me an EPC?
Energy Performance Certificates can only be produced by qualified Home Inspectors or Domestic Energy Assessors. They will usually be instructed by the HIP provider but the estate agent that commissions the Pack will sometimes produce one on their own volition if they have a qualified DEA in the office.
I have heard that EPCs will be produced by surveyors, is this true?
The Royal Institute of Chartered Surveyors issued Judicial Review proceedings against the Government in May 2007 after claiming that they had failed to consult fully on the inclusion of the EPC in the Pack. It is believed they had hoped to remove the EPC from the HIP so as to make the inspection part of the valuation survey process. However, as the EU directive states that the EPC must be produced by the seller, this is no longer the case.
Do the exceptions still apply?
All of the exceptions to the requirement for HIPs still apply with the addition of the Regulation 34 exception.
Will the “28 day rule” still apply?
The "28 day rule" will still apply during the temporary period described in Regulation 34.
The effect of Regulation 34 is to provide that the HIP duties do not apply until the EPC is obtained, at which point the seller should provide a HIP for potential buyers as soon as it is practicable. At this stage, the HIP must include the index, EPC, evidence of title (if registered) and sale statement.
Documents affected by the “28 day rule” (evidence of title for unregistered properties, searches and leasehold/common hold information) could still be omitted if they can not be obtained within the permitted period.
If a HIP has only been ordered prior to accepting the offer, i.e. no HIP has been produced, but EPC has been completed (in readiness for exchange of contracts), does this mean that once this property is put back on the market, it needs a full HIP as the EPC is already available?
If the property is one to which the HIP duties applied - yes. But see answer above on “28 day rule”: it may not be a "full HIP" at this stage if other items are yet to be obtained.
Does this mean that when a property is returned to market, the first point of marketing is when it was first put on the market or when it was returned to market?
Reg 34(5) provides that once the HIP duties apply - i.e. because the seller has obtained an EPC and brought the Regulation 34 exception to an end - the first point of marketing for the documents that are included in the HIP at that stage will be the date on which marketing first began.
If I sell a property before the HIP is complete, the regulations state that it is then ‘off the market’ and so the HIP regulations no longer apply. Does this mean that I can stop the HIP process at this point and possibly save some money?
No. In order to comply with the regulations you must demonstrate that the HIP has been ordered at first point of marketing. By doing so, all data providers will be instructed to source the relevant information, and so a cost will be incurred.