When does a seller need a HIP?
When the property being sold is in England or Wales and is a residential property and is sold with vacant possession (but see the transitional arrangements set out in Fact sheet 20).
The HIP must be in existence and available for supply to a potential buyer BEFORE marketing starts - marketing starts it is made public that a property is or may be for sale.
Sellers need a HIP even if they are not using an estate agent - if no estate agent is instructed the seller is the ‘Responsible Person’ (RP). The duty to have a HIP and provide copies passes to the estate agent when he is instructed to market the property. The seller can be a joint RP if the seller also markets the property.
‘Private’ sales do not require a HIP but care is needed as to what is a ‘private’ sale. An EPC is however needed for private sales.
Marketing is to the public or ‘a section of the public’ which is not defined in the legislation and can be difficult to assess so care is needed
The definition of estate agent is also wide – any business that involves marketing a property on the seller’s instructions may be caught. However if the seller of a residential property in England or Wales uses an estate agent outside England or Wales, the seller will be the RP and will need to have a HIP and be able to provide copies;
A HIP is not required forNon-residential premises
- Property whose planning limits its use to holiday accommodation or prohibits it from being occupied all year round
- Mixed-use properties such as a shop with flat over sold together;
- Dual use properties suitable for residential and non-residential use – live/work
- Portfolio of residential properties sold as one lot and which do not need to be vacant
- Properties that are unoccupied and unsafe
- Properties for demolition and redevelopment
CARE must be taken though as conditions have to be met to benefit from exclusions. If they cease to apply at any time during the marketing period a HIP is required to avoid a breach of the law – see Fact sheet 17.
There are also exemptions during the transitional arrangements details of which can be found in Fact sheet 20.