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House buyers ignore HIPs at their peril
Posted on 22/05/09
Community Services
Research has shown that 77% of buyers pay no attention to Home Information Packs (HIPs) when deciding whether to buy a property. But using a HIP can speed up the process and lessen the risk of problems occuring later on.
Leicestershire Trading Standards is reminding buyers to ask for the pack as soon as they are interested in a property, and take time to read through it.
From 6 April 2009, changes were made to Home Information Packs so that more and better information is available from the first day a property is put up for sale. These changes are:
- Introduction of the Property Information Questionnaire (PIQ). The information in a PIQ will help purchasers make more informed decisions when considering making an offer. They will also ensure that the sale of a house goes smoothly.
- End of the temporary first day marketing exemption. No marketing can take place until a HIP has been compiled.
- All searches, whether produced by a local authority or a search company, must be complete. HIP providers can no longer cover gaps in the data with insurance
Buyers should make sure a copy of the HIP is passed to their solicitor or conveyancer as soon as possible, so that essential documents, such as the local property searches, are included early in the process of transferring a property from one owner to another.
It's worth remembering that the majority of sellers are also buyers, so most people will benefit from getting improved information at the beginning before any decisions are made or time is wasted.
David Bull, Head of Leicestershire County Council Trading Standards said Making best use of the Home Information Pack at an early stage can help to take some of the stress out of home buyng by making the process easier and less costly. Conveyancing will be speedier also. Home buyers should be given a HIP by the estate agent, if not this could be a breach of the law
If a pack has not been supplied please call Consumer Direct on 08454 04 05 06. More information and links can be found at www.leics.gov.uk/tradingstandards.
Contacts
- Paul Davis 0116 305 6534
- Keith Regan 0116 305 6533
Notes for Editors
1) The HIP duties are enforced by Local Authority Trading Standards Officers. They are there to offer help and advice, but can also issue penalty notices to anyone not complying with the Regulations. The current penalty is 200.
2) A breach of the HIP Regulations is an 'undesirable practice' under the Estate Agents (Undesirable Practices) (No.2) Order 1991 and would be a trigger under the Estate Agents Act for the OFT to consider whether an estate agent is fit to practice.
3) The OFT can impose a ban on an estate agent found to have seriously breached the Act and can also issue a Warning Order where the breach is serious but not serious enough to warrant a ban. Once this has been issued, if the agent continues to breach the Act in the same manner, the OFT can immediately make a Prohibition Order banning them from practising as an estate agent in the future.
More information about HIPs is available for industry professionalsby calling Leicestershire Trading Standards Business Adviceline on 0116 305 8000.
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