HIPS - Home Information Packs in the US

HIP, (Home Information Packs) became mandatory for all homes listed for sale in England and Wales on December 14, 2007.  There is no equivalent law in the United States at the time of this writing; however, many of the items covered under HIP are addressed in the U.S..

The contents of a HIP will vary if the property is freehold, commonhold or leasehold, but will include the following mandatory items:

• Home Information Pack Index

• Energy Performance Certificate

• Sustainability information (for new builds)

• Sale statement

• Evidence of title

• Standard searches

The HIP may contain optional documents such as:

• Home condition report

• Legal summary

• Home use and or contents form

• Specified search reports

The index of course lists the contents of the package, but will contain information on missing required items.  Items missing must include confirmation that the item will be provided within 28 days of marketing, the reason why it was not included, steps taken to obtain it and the date it is expected to be obtained.

The energy performance certificate will contain information on the home’s energy efficiency rating and it’s C02 environmental impact.  It will also inform potential buyers on the home’s potential for upgrades to improve these ratings.  There is no equivalent requirement in the U.S., but many utilities will provide a similar inspection and certification at no cost to the current homeowner.

Sustainability information for new builds rates the home in nine categories that determine it’s use of water and energy.  These are:

• Energy and CO2 emissions

• Water

• Materials

• Surface water run-off

• Waste

• Pollution

• Health and wellbeing

• Management

• Ecology

The U.K. has an aggressive program of reducing carbon emissions by 60% by 2050.  There is no equivalent law at this time in the U.S.  All new build homes in the U.S. will have information regarding energy usage of installed appliances and mechanical systems though.

The sales statement will contain limited information regarding the seller, the property and contents included with the sale.  This is addressed in the U.S. by the seller’s property disclosure that also encompasses the information contained in the home condition report.  Additional information would be obtained in the U.S. through a home inspection.

Evidence of title and standard searches are requirements on any mortgaged property in the U.S..  This information is provided prior to closing the purchase, but is generally required to be performed by an agent of the buyers choosing.