When we raised the issue last summer about the quality of content within HIPs, we received a barrage of complaints from our competitors that we were causing unnecessary problems. However, as sellers continue to remain ill-informed about the variable quality of personal local authority searches, an inspection by Birmingham trading standards officers has revealed that a majority of HIPs they inspected contained sub-standard searches. We were delighted that at a recent conference Ian Wright MP agreed with our concerns about the use of poor quality content and confirmed this matter would be addressed “imminently”. With the provision allowing the inclusion of personal search insurance due to expire on 31st December, we continue to press for the exclusion on the use of personal searches in HIPs.
HIP effectiveness and Exchange Ready HIPs
Recent research from Connells has revealed that the time between offer and exchange has been reduced by 6 days where HIPs are involved in the process. Inevitably, there remain concerns about the effectiveness of some of the content and the latest fashion for “Exchange-Ready HIPs” appears to do little to address this. “Exchange Ready HIPs” include some forms (which are due to be obligatory from January 1st 2009) an environmental search and a draft contract. Feedback from the Law Society and solicitors has revealed that as most use their own contracts, the value of including such draft documents is highly questionable.
October 1st - EPCs for all properties
As many people are aware, most residential properties that are being marketed for sale now need an Energy Performance Certificate (EPC) before exchange of contracts. However, there are some exceptions for small standalone properties (under 50 sqm), those that are temporary, agricultural or for religious use. It is important to note that the owner rather than their estate agent is responsible for providing an EPC, which differs from HIPs where the estate agent is responsible.
Commercial Energy Performance Certificate Rules
Originally, from October 1st all commercial properties being offered for sale or had a change of tenancy, would need an EPC. The temporary provision that excluded smaller properties (under 2500sqm) that were already on the market, has been delayed until January 2009. However, all new instructions (other than those exempted under the rules above) do need an EPC. The complexity of producing commercial certificates combined with a current shortage of commercial energy assessors has resulted in higher prices with lead-times typically of three to four weeks.
