We’re starting to feel like Bill Murray’s Phil Connor in Groundhog Day, waking up to the sounds of Sonny & Cher every morning. Previously, only Labour had been accused of changing their minds over HIPs, but it seems the same story all over again, with the Conservatives exhibiting the same vagueness of direction when it comes to their future. As we describe below, the opposition are learning that anything to do with property is always more complex than it might first appear. The confident November tone of “we’ll scrap HIPs in weeks” has been replaced with a rather more subdued December mumble of “we’ll scrap them in 100 days … after a consultation … and a new piece of legislation”. Despite this repeated HIPs uncertainty, we wish all our readers a happy Christmas break in preparation for what looks like being a very busy start to 2010 and for all your support during 2009.
Conservative plans for HIPs at risk of derailing?
Despite promises from the shadow housing minister to scrap HIPs immediately upon their election, the fact that the Conservatives have acknowledged that a consultation is required is raising doubt about their ability to carry out their plans for HIPs. Notwithstanding concerns about the increase in unemployment that they will cause (estimates range from about 5,000 to 20,000) the legal minefield they are walking into is challenging. Their claim to require only secondary legislation (a statutory instrument) is problematic as the law they are trying to change is actually primary legislation. Indeed, the mechanism they were hoping to use can be likened more to a train’s “Emergency Alarm” rather than a “Power Off” button on a TV remote control – in other words, there must be concerns about striking a car stuck on a level crossing, rather than just a disliking for X-Factor.
The Partnership joins the HIP Reform Group
We have always distanced ourselves from pressure groups and trade associations, as we find their often highly-polarised positions do not match our views. However, based on the increasingly positive feedback from agents concerning elements of the HIPs, we have signed up to the HIP Reform Group who are looking at ways to improve the contents of HIPs. We share agent’s concerns about the delays caused by the lack of first day marketing, and question the wisdom of allowing variable-quality local authority searches in the HIP. We believe that the HIP Reform Group is a very positive step forward to improving the house buying process, and hopefully avoiding throwing the baby out with the Conservative’s bathwater.
Referral Fees – concerns broaden to conveyancing
Further to our concerns about the referral fees being paid by HIP providers to agents that are not declared to their clients, it appears that conveyancers are now coming under similar scrutiny by the Legal Services Consumer Panel. As we do not approve of referral fees for either our HIP service or our new conveyancing service, this increased exposure by regulatory and advisory bodies are a welcome change from the ambivalence that has appeared to be the case up until now.
Tuesday 22 December 2009
Tuesday 17 November 2009
“Buy cheap … buy twice … or not at all”
Most buyers are concerned about the price of conveyancing – they want to pay the absolute minimum but obviously want to receive excellent service. However, in a recent case we found that where a company quoted a low price, this can be very misleading. A client was quoted £650 to buy a property, but after a couple of months of being drip-fed individual documents, they were astonished to receive a bill of more than double their initial quote. Not only had the firm charged for “additional” services such as filling in tax forms and working with the lender, but had made the process so difficult, that the buyer decided to reconsider the purchase. We believe this type of sharp practice should be stamped out – indeed, our new conveyancing service, like our HIPs, uses fixed pricing to avoid such nasty surprises for our clients.
Quiet marketing – a reminder
At this time of year, many sellers are considering putting their property on the market in the new year and are instructing estate agents to start preparing particulars. We have noticed a trend where we have been asked by the agent to produce a HIP and the client has tried to convince us that one is not needed, as they are “quietly marketing” the property. There is no such exemption – if an agent or seller tells a prospective buyer about a property, irrespective of whether particulars have been produced, this is considered marketing and a HIP is required.
Trading Standards becoming more active
For those that think that HIPs are not being policed, over the past few weeks it has become very clear that trading standards officers are becoming more proactive regarding non-compliance amongst agents. We came across one situation where an inspector walked into an office and demanded to see HIP for a property that was being advertised in the window. When it could not be shown, they immediately started proceedings. The other scenario was a “sting” operation, with a couple convincing an agent to start marketing a property without a HIP. They turned out to be trading standards officers who proceeded to issue a notice against the agent.
More legal problems ahead?
Following on from our piece about possible legal problems facing a potential Conservative government wanting to suspend HIPs, further research has shown it may be more difficult than first thought. Whilst The Housing Act provides for the suspension of HIPs, evidence from Hansard reveals this was to be used only under “extraordinary circumstances”. It is questionable whether a political decision could be deemed to be “extraordinary circumstances” which appears to leave the way open for a legal challenge.
Quiet marketing – a reminder
At this time of year, many sellers are considering putting their property on the market in the new year and are instructing estate agents to start preparing particulars. We have noticed a trend where we have been asked by the agent to produce a HIP and the client has tried to convince us that one is not needed, as they are “quietly marketing” the property. There is no such exemption – if an agent or seller tells a prospective buyer about a property, irrespective of whether particulars have been produced, this is considered marketing and a HIP is required.
Trading Standards becoming more active
For those that think that HIPs are not being policed, over the past few weeks it has become very clear that trading standards officers are becoming more proactive regarding non-compliance amongst agents. We came across one situation where an inspector walked into an office and demanded to see HIP for a property that was being advertised in the window. When it could not be shown, they immediately started proceedings. The other scenario was a “sting” operation, with a couple convincing an agent to start marketing a property without a HIP. They turned out to be trading standards officers who proceeded to issue a notice against the agent.
More legal problems ahead?
Following on from our piece about possible legal problems facing a potential Conservative government wanting to suspend HIPs, further research has shown it may be more difficult than first thought. Whilst The Housing Act provides for the suspension of HIPs, evidence from Hansard reveals this was to be used only under “extraordinary circumstances”. It is questionable whether a political decision could be deemed to be “extraordinary circumstances” which appears to leave the way open for a legal challenge.
Monday 19 October 2009
“Move along please … there's plenty more room upstairs”
Most people in the property industry are aware that the Conservatives has promised to scrap HIPs in the same manner in which Boris Johnson promised to scrap the bendy buses in London. Whilst we don’t doubt the commitment of either to their cause, some promises are sometimes more politically expedient than practically appropriate. With growing evidence from our agents that whilst HIPs are by no means perfect, (especially the first day marketing restriction) they have introduced some improvements into the selling process, and as such suspension risks throwing the baby out with the bathwater. In addition, the Conservatives’ promise to move the delivery of the Energy Performance Certificate (EPC) to the end of the conveyancing process would require a change in the law that demands that energy charts are displayed on property particulars. Whilst people may worry that some bendy buses catch fire and cause traffic congestion, like HIPs, getting rid of them may not be quite as simple as politicians would like.
Low Rating Energy Certificates – 1 and 1’s
When a property scores extremely poorly in an energy inspection, sometimes no potential improvements are shown on the EPC, so the potential rating remains the same as the actual rating. Whilst this appears illogical, the explanation is as follows :
The scale used on an EPC ranges from 1 to 100, the result of an inverse calculation of a figure called the “Energy Cost Factor” (ECF). If the ECF goes above 10, the EPC rating will be below zero, but this has to be shown as a 1 at a minimum. Only recommendations that improve the energy efficiency of a property by more than 1 point can be included on a report. Therefore, if the improvement still means the ECF is higher than 10, the EPC rating will remain as 1, and hence the recommendations cannot be included and no potential improvements can apparently be made to an inefficient property.
Energy Recommendations
Today. a major change concerning recommendations for improving the energy efficiency ratings of properties has been made. Previously, some energy assessors have been criticised for including recommendations such as the installation of solar panels and replacement double glazing on listed buildings, which of course, their status does not allow. In the past, more sensitive energy assessors removed such recommendations that they felt were inappropriate. However, from today, as part of the standardisation process, listed building status or a property in a conservation area are not sufficient grounds in their own right to suppress a recommendation.
The Challenge of Regulation
A search provider emailed us last week accusing our search supplier (one of their competitors) of not being legally compliant. Although the allegations proved to be totally unproven, they appeared to be based on an interpretation of a guidance note published by a regulatory body. We have recently come across two companies that subscribed to this same regulatory organisation - one company thought a second title was just a referred document and the other proved incapable of producing a search for an unregistered property. We remain extremely wary of any company that uses the blunt instrument of apparent regulation for competitive advantage.
Low Rating Energy Certificates – 1 and 1’s
When a property scores extremely poorly in an energy inspection, sometimes no potential improvements are shown on the EPC, so the potential rating remains the same as the actual rating. Whilst this appears illogical, the explanation is as follows :
The scale used on an EPC ranges from 1 to 100, the result of an inverse calculation of a figure called the “Energy Cost Factor” (ECF). If the ECF goes above 10, the EPC rating will be below zero, but this has to be shown as a 1 at a minimum. Only recommendations that improve the energy efficiency of a property by more than 1 point can be included on a report. Therefore, if the improvement still means the ECF is higher than 10, the EPC rating will remain as 1, and hence the recommendations cannot be included and no potential improvements can apparently be made to an inefficient property.
Energy Recommendations
Today. a major change concerning recommendations for improving the energy efficiency ratings of properties has been made. Previously, some energy assessors have been criticised for including recommendations such as the installation of solar panels and replacement double glazing on listed buildings, which of course, their status does not allow. In the past, more sensitive energy assessors removed such recommendations that they felt were inappropriate. However, from today, as part of the standardisation process, listed building status or a property in a conservation area are not sufficient grounds in their own right to suppress a recommendation.
The Challenge of Regulation
A search provider emailed us last week accusing our search supplier (one of their competitors) of not being legally compliant. Although the allegations proved to be totally unproven, they appeared to be based on an interpretation of a guidance note published by a regulatory body. We have recently come across two companies that subscribed to this same regulatory organisation - one company thought a second title was just a referred document and the other proved incapable of producing a search for an unregistered property. We remain extremely wary of any company that uses the blunt instrument of apparent regulation for competitive advantage.
Monday 21 September 2009
''Smoke, mirrors and foundations of sand.''
In the wild-west that is the HIP industry, we’re seeing tumbleweeds where before there were companies in their hundreds. We were always intrigued by cowboy organisations charging low prices, especially those that didn’t increase them to take into account the increase in search costs in April. Several medium-sized providers have closed their operations in the past few weeks. A large provider has drastically increased the price it charges for refreshing searches in a HIP, quoting £250 initially, increasing to £350 in a subsequent call. Another provider that cut its back-office staff, has been asking DEAs to collect payments for them at the property. It is clear that even those companies that are managing to survive are having to resort to increasingly desperate measures with the corresponding impact on service levels.
Energy Savings Trust
Since the introduction of Energy Performance Certificates, it has frequently been suggested that there was an ulterior motive for the use of the data that was being collected. However, until recently there was no evidence that anyone was allowed to access this data containing details of insulation, estimated fuel costs, property sizes and types of heating systems. However, over the summer, a regulation was passed that enabled the Energy Savings Trust to access this data, which was followed by a recommendation by the same organisation that houses with a low rating should not be able to be marketed until they were made more energy efficient. We await further details from this organisation about how this data will be used.
Kickbacks – the issue widens
We were pleased to see that Which? Magazine had picked up on the concerns about consumers being overcharged for HIP services. Ironically, the cheapest supplier on the market was later found to be withholding providing a HIP to a client because they refused to take up their conveyancing services. However, although Which? suggested that some agents are marking up HIP prices, it also mentioned our concerns about agents taking kickbacks from providers, and not disclosing them.
The Partnership expands its legal expertise
We are delighted to announce that two practising solicitors have joined The Partnership, further strengthening our legal capabilities and expertise. Guy Crowther has a background in probate and Claire Speller has worked for several major firms specialising in residential conveyancing, in particular leasehold transactions. These two important additions gives the company increased depth in legal matters for the future.
Energy Savings Trust
Since the introduction of Energy Performance Certificates, it has frequently been suggested that there was an ulterior motive for the use of the data that was being collected. However, until recently there was no evidence that anyone was allowed to access this data containing details of insulation, estimated fuel costs, property sizes and types of heating systems. However, over the summer, a regulation was passed that enabled the Energy Savings Trust to access this data, which was followed by a recommendation by the same organisation that houses with a low rating should not be able to be marketed until they were made more energy efficient. We await further details from this organisation about how this data will be used.
Kickbacks – the issue widens
We were pleased to see that Which? Magazine had picked up on the concerns about consumers being overcharged for HIP services. Ironically, the cheapest supplier on the market was later found to be withholding providing a HIP to a client because they refused to take up their conveyancing services. However, although Which? suggested that some agents are marking up HIP prices, it also mentioned our concerns about agents taking kickbacks from providers, and not disclosing them.
The Partnership expands its legal expertise
We are delighted to announce that two practising solicitors have joined The Partnership, further strengthening our legal capabilities and expertise. Guy Crowther has a background in probate and Claire Speller has worked for several major firms specialising in residential conveyancing, in particular leasehold transactions. These two important additions gives the company increased depth in legal matters for the future.
Wednesday 8 July 2009
“Ignorance is definitely not terribly blissful”
Despite the imminent second anniversary of Home Information Packs (HIPs), remarkably, most sellers we speak to are still in the dark about their content and use. Most think a HIP is just an Energy Performance Certificate and often are concerned that their property will “fail”. Whilst we take the time and effort to explain to our clients about HIPs, (including the potential pitfalls of the use of personal local authority searches) feedback from the market is that the majority of HIP providers simply call to take payment by credit card, using call-centre staff that have neither the time nor the expertise to explain about the content of HIPs. Although industry insiders demand that “the government should do a better job informing the public” it is up to the HIP providers, i.e. those companies that are being paid to offer a service, to explain to clients what it is they are paying for, rather than just allowing them to blindly accept HIPs as “just another property stealth tax”
Backhanders
Last month, The Partnership was asked to comment on an investigation carried out by Channel 4 news which exposed the practice of HIP providers paying estate agents “commissions” when work was passed to them. Commentators dismissed this as merely a function of the market, using the assumption that estate agents were “reselling” HIPs and just adding on a markup for their own work and efforts. However, in reality, most payments are made directly to the HIP companies, who make no mention of the money that they are paying to the agent – a totally different scenario than a wholeseller/retailer agreement. The Partnership does not indulge in practices that we consider to be highly questionable at best, and at their most blatant, simple bribery.
Floorplans for £10
We were recently informed by a customer that they were considering another supplier for their HIPs, because they were offering floorplans for their properties for an additional £10 cost on top of the HIP. Since the introduction of HIPs, the use of low-cost floorplans has taken off, with some agents seeing these as a simple way to cut costs. Even with the dubious economics of the HIP industry, the ability of someone to do an accurate floorplan for £10 must be questioned. Those companies using professional floorplanners know that the production of a reliable floorplan is vital, and there are many cases where companies have been successfully sued where floorplans on property particulars are incorrect.
Search turnaround times
The nightmare that is local authority search return times is slowly starting to improve. Timescales have lengthened considerably since April, due to the need for personal search companies to obtain complete documentation, including building control notices, data that cheap search providers never used to bother trying to obtain. With some local authorities having undergone major restructuring in April, this has caused significant delays to both personal searches and the more reliable, official local authority searches. According to data obtained by The Partnership, the average turnaround time for local authority searches has come down to about 13 working days. This figure is expected to improve to about 10 days by the Autumn.
The Partnership moves to new offices
Due to significant business growth, we have moved to new, larger offices in Guildford - these details are as follows:
4 Wey Court
Mary Road
Guildford
Surrey
GU1 4QU
Backhanders
Last month, The Partnership was asked to comment on an investigation carried out by Channel 4 news which exposed the practice of HIP providers paying estate agents “commissions” when work was passed to them. Commentators dismissed this as merely a function of the market, using the assumption that estate agents were “reselling” HIPs and just adding on a markup for their own work and efforts. However, in reality, most payments are made directly to the HIP companies, who make no mention of the money that they are paying to the agent – a totally different scenario than a wholeseller/retailer agreement. The Partnership does not indulge in practices that we consider to be highly questionable at best, and at their most blatant, simple bribery.
Floorplans for £10
We were recently informed by a customer that they were considering another supplier for their HIPs, because they were offering floorplans for their properties for an additional £10 cost on top of the HIP. Since the introduction of HIPs, the use of low-cost floorplans has taken off, with some agents seeing these as a simple way to cut costs. Even with the dubious economics of the HIP industry, the ability of someone to do an accurate floorplan for £10 must be questioned. Those companies using professional floorplanners know that the production of a reliable floorplan is vital, and there are many cases where companies have been successfully sued where floorplans on property particulars are incorrect.
Search turnaround times
The nightmare that is local authority search return times is slowly starting to improve. Timescales have lengthened considerably since April, due to the need for personal search companies to obtain complete documentation, including building control notices, data that cheap search providers never used to bother trying to obtain. With some local authorities having undergone major restructuring in April, this has caused significant delays to both personal searches and the more reliable, official local authority searches. According to data obtained by The Partnership, the average turnaround time for local authority searches has come down to about 13 working days. This figure is expected to improve to about 10 days by the Autumn.
The Partnership moves to new offices
Due to significant business growth, we have moved to new, larger offices in Guildford - these details are as follows:
4 Wey Court
Mary Road
Guildford
Surrey
GU1 4QU
Monday 11 May 2009
“Lights go out, walls come tumbling down”
Whilst Paul Weller’s Style Council was talking about greater issues than legislative changes to the local authority search process, the message seems quite apt. The last few weeks have been tumultuous for the Home Information Pack industry. Whilst we are delighted to see the removal of the sticking plaster of insurance for personal searches, the impact of the changes on April 6th has resulted in significant delays in search turnaround times. Previously, booking an appointment for a personal search took minutes, but the additional appointments now required have resulted in lengthy discussions, and dates are stretching out to several weeks, combined with higher prices. Ironically, it appears that requiring personal search agents to collect complete information has eliminated the only two perceived benefits of personal searches - a low price and fast turnarounds. This explains why we have always been against them – when an accurate search is required, the price increases as does the turnaround time – nothing more need be said.
HIP Anniversary Issues
With properties still on the market that had a HIP produced over a year ago, requests for updating of information are now becoming more common. The position is clear in that if a property is taken off the market a year after it was first marketed with a HIP, when it is remarketed, new searches and title documentation are required, as technically a new first point of marketing has occurred. However, many clients are unaware that under the new regulations introduced in April, when such a first point of marketing occurs, the seller must complete a Property Information Questionnaire, and hence these should be provided in addition to the searches and the title documentation.
Price increases everywhere
The past few weeks have seen significant increases in the price of personal searches, with some companies opting to price the search dependent on the local authority. With price increases ranging from £20 up to £100, this has proved challenging for many low-cost providers, and agents should be wary of those providers that are claiming to absorb the price increases. Given the tight margins involved in HIPs, the longevity of a company pretending to absorb the cost must be questioned. Indeed, these are not the only price increases, with news this week that water companies are increasing their fees, in some cases up by about 8%. As ever, The Partnership continues the offer fixed-rate pricing for all our HIPs.
Property Information Questionnaire liability issues
There have been reports about liabilities if a seller incorrectly completes the new Property Information Questionnaire. These warnings follow a case where an energy assessor was found to be liable for details within an Energy Performance Certificate being incorrect and the buyer choosing to rely on them. Whilst obviously, the introduction of a form does not undermine the principle of caveat emptor, it would appear that the risk would only arise if the seller’s solicitor passed a HIP to a buyer’s solicitor, so that it would become solicitor to solicitor communication and therefore a liability could arise. Where PIQs are provided to prospective clients from the HIP provider, no such relationship exists and therefore the liability appears minimal. Any solicitor representing a buyer would be expected to check all documentation for accuracy.
HIP Anniversary Issues
With properties still on the market that had a HIP produced over a year ago, requests for updating of information are now becoming more common. The position is clear in that if a property is taken off the market a year after it was first marketed with a HIP, when it is remarketed, new searches and title documentation are required, as technically a new first point of marketing has occurred. However, many clients are unaware that under the new regulations introduced in April, when such a first point of marketing occurs, the seller must complete a Property Information Questionnaire, and hence these should be provided in addition to the searches and the title documentation.
Price increases everywhere
The past few weeks have seen significant increases in the price of personal searches, with some companies opting to price the search dependent on the local authority. With price increases ranging from £20 up to £100, this has proved challenging for many low-cost providers, and agents should be wary of those providers that are claiming to absorb the price increases. Given the tight margins involved in HIPs, the longevity of a company pretending to absorb the cost must be questioned. Indeed, these are not the only price increases, with news this week that water companies are increasing their fees, in some cases up by about 8%. As ever, The Partnership continues the offer fixed-rate pricing for all our HIPs.
Property Information Questionnaire liability issues
There have been reports about liabilities if a seller incorrectly completes the new Property Information Questionnaire. These warnings follow a case where an energy assessor was found to be liable for details within an Energy Performance Certificate being incorrect and the buyer choosing to rely on them. Whilst obviously, the introduction of a form does not undermine the principle of caveat emptor, it would appear that the risk would only arise if the seller’s solicitor passed a HIP to a buyer’s solicitor, so that it would become solicitor to solicitor communication and therefore a liability could arise. Where PIQs are provided to prospective clients from the HIP provider, no such relationship exists and therefore the liability appears minimal. Any solicitor representing a buyer would be expected to check all documentation for accuracy.
Monday 23 March 2009
“In the land of the blind, the one-eyed man is king”
Whilst HIP suppliers have routinely made grand promises about everything from ease of ordering, instant EPC appointments and 24 hour turnaround times, their approach to the Property Information Questionnaires (PIQs) make Erasmus’s words more appropriate than ever. Providers, faced with the unenviable task of providing a completed PIQ within the HIP are assuming that every vendor will complete an online form within minutes of paying for the HIP. Whilst this approach suits low-price system-oriented suppliers, the reality is that the PIQ will be a time-consuming and drawn-out process. If providers asked estate agents about the effort it takes to ensure clients provide information about their property, the reality will be a little unpalatable. Sellers will want paper copies of the form, which they will then delay in returning, which in turn will require the provider to follow up rapidly and effectively. As properties cannot be marketed without the PIQ in place after April 6th, we expect high levels of frustration from agents using providers that rely on technology for service provision.
Government Advertising
To overcome the lack of awareness about the changes in April, full-page advertisements from the government are starting to appear in the national and regional press. They are focussed on promising buyers that more information will be available about prospective properties for free, and have appeared in the London Metro and regional newspapers across the country, as well as the trade press. This provides the strongest evidence yet about the government’s commitment to the changes and should help drive awareness of the change to sellers.
Trading Standards Inspection
With the scrapping of the first day marketing exemption, questions have been raised about how effectively this new system will be policed. There has been a certain amount of scepticism about the ability of trading standards to cope with inspections of agents. However, evidence is emerging that trading standards officers are actively inspecting agents, with reports of on-the-spot visits in the London Borough of Camden. Agents were asked to demonstrate the process they use to order HIPs, as well as produce copies of a HIP on an existing property and show the Energy Performance Certificate for the rental properties that they had on their books.
PIQ Service
Despite not being obligatory until April 6th, sellers are starting to return completed PIQs to us. We are adopting a three-tier approach to their introduction and are working closely with our clients to minimise the impact of their introduction:
1. Paper copies from agent
We are sending out hundreds of pre-printed copies to agents this week that they can supply to their clients directly on instruction and return to our offices.
2. Paper copies directly to client
From April, sellers will be given the option to receive the PIQ in paper format, with reply-paid envelopes included to accelerate the return process.
3. Electronic delivery
We will send out links to the PDF version of the PIQ – available here, which can be printed out, completed and then returned to the company, as well as a link to the online version for instant data collection.
Please contact us if you have any questions about the process or for copies of the forms.
Government Advertising
To overcome the lack of awareness about the changes in April, full-page advertisements from the government are starting to appear in the national and regional press. They are focussed on promising buyers that more information will be available about prospective properties for free, and have appeared in the London Metro and regional newspapers across the country, as well as the trade press. This provides the strongest evidence yet about the government’s commitment to the changes and should help drive awareness of the change to sellers.
Trading Standards Inspection
With the scrapping of the first day marketing exemption, questions have been raised about how effectively this new system will be policed. There has been a certain amount of scepticism about the ability of trading standards to cope with inspections of agents. However, evidence is emerging that trading standards officers are actively inspecting agents, with reports of on-the-spot visits in the London Borough of Camden. Agents were asked to demonstrate the process they use to order HIPs, as well as produce copies of a HIP on an existing property and show the Energy Performance Certificate for the rental properties that they had on their books.
PIQ Service
Despite not being obligatory until April 6th, sellers are starting to return completed PIQs to us. We are adopting a three-tier approach to their introduction and are working closely with our clients to minimise the impact of their introduction:
1. Paper copies from agent
We are sending out hundreds of pre-printed copies to agents this week that they can supply to their clients directly on instruction and return to our offices.
2. Paper copies directly to client
From April, sellers will be given the option to receive the PIQ in paper format, with reply-paid envelopes included to accelerate the return process.
3. Electronic delivery
We will send out links to the PDF version of the PIQ – available here, which can be printed out, completed and then returned to the company, as well as a link to the online version for instant data collection.
Please contact us if you have any questions about the process or for copies of the forms.
Friday 27 February 2009
“I am not economically viable”
From April, we may see former personal search agents outside council offices wearing placards with the same message as the redundant employee in Joel Schumacher’s classic film,“Falling Down”. This is because from that time, the current method of using insurance to cover missing information in personal searches can no longer be used and local authorities will be able to charge for providing complete information, which observers believe will make the personal search market uncompetitive. Given that many solicitors tend to trust only the drainage search element of a HIP, this long overdue change could mean a wider use of official searches in a HIP, making them more useful. While we sympathise with anyone whose job is at risk, the two-tier system introduced by the use of personal searches has always undermined the HIP and the change is welcomed.
Domestic Energy Assessors and access
The accountability of energy assessors is starting to be questioned with anecdotal evidence that agents are becoming concerned about the quality of individuals that are, in effect, representing their firm. In addition to these concerns, we have also seen issues with owners (and in particular landlords) being unwilling to allow entry for assessors. However, under the Energy Performance of Buildings Regulations, access must be provided for assessors and landlords cannot deny access when requested. Finally, given that after April 6th the speed with which Energy Performance Certificates can be produced will be vital, those firms currently putting up with response times of 1-2 weeks may find that they need to review their suppliers.
Property Information Questionnaires (PIQ)
It is becoming clear that after April 6th, one of the key issues determining whether a property may be marketed will be the return of the completed Property Information Questionnaire. These forms must be filled out by the seller and returned to the HIP provider before a property may be marketed. Many of our clients feel that the most effective method will be to provide the form to the client as part of the instruction process and for the HIP provider to follow up on their return. We are already supplying stocks of these to our clients, along with reply paid envelopes and naturally promoting the online completion of the form through our system.
Current legal position
It is apparent that some HIP providers are trying to convince sellers to pay for documents to be refreshed in HIPs that are a year old. However, searches and title information only need to be refreshed if a property is taken off the market a year after it was first marketed and then remarketed again. Recognising this, and to assist our clients, we provide a unique warning system which alerts to agent to properties that have been on the market a year to check their records.
We have produced a summary sheet which summarises the current legal position which can be downloaded here:
http://www.thepartnershiplimited.com/Documents/The%20Current%20Position%20-%20February%202009.pdf
Domestic Energy Assessors and access
The accountability of energy assessors is starting to be questioned with anecdotal evidence that agents are becoming concerned about the quality of individuals that are, in effect, representing their firm. In addition to these concerns, we have also seen issues with owners (and in particular landlords) being unwilling to allow entry for assessors. However, under the Energy Performance of Buildings Regulations, access must be provided for assessors and landlords cannot deny access when requested. Finally, given that after April 6th the speed with which Energy Performance Certificates can be produced will be vital, those firms currently putting up with response times of 1-2 weeks may find that they need to review their suppliers.
Property Information Questionnaires (PIQ)
It is becoming clear that after April 6th, one of the key issues determining whether a property may be marketed will be the return of the completed Property Information Questionnaire. These forms must be filled out by the seller and returned to the HIP provider before a property may be marketed. Many of our clients feel that the most effective method will be to provide the form to the client as part of the instruction process and for the HIP provider to follow up on their return. We are already supplying stocks of these to our clients, along with reply paid envelopes and naturally promoting the online completion of the form through our system.
Current legal position
It is apparent that some HIP providers are trying to convince sellers to pay for documents to be refreshed in HIPs that are a year old. However, searches and title information only need to be refreshed if a property is taken off the market a year after it was first marketed and then remarketed again. Recognising this, and to assist our clients, we provide a unique warning system which alerts to agent to properties that have been on the market a year to check their records.
We have produced a summary sheet which summarises the current legal position which can be downloaded here:
http://www.thepartnershiplimited.com/Documents/The%20Current%20Position%20-%20February%202009.pdf
Sunday 25 January 2009
“Buyers are starting to ask for HIPs”.
We’re very pleased that our clients have spare chairs in their offices, because we've been deploying them with great haste on several occasions recently when greeted with the news that buyers are asking to see a HIP. As their content is intended for conveyancers we are intrigued to see their reaction to details of restrictive covenants and agricultural tie appeals, but the mere fact that they are asking for them is highly encouraging. The introduction of the new Property Information Questionnaire (PIQ) from April which includes questions about access to the property as well as council tax band information makes the HIP more consumer-oriented, and we expect enquiries about their content to increase.
Property Information Questionnaire
Any doubt about the government’s intention to press ahead with the changes in April were put aside last week when the law was quietly changed to dictate that the PIQ is required before a property may be marketed for sale. Sellers must complete the questionnaire and it must be included in the HIP before marketing may commence. It is important to note that if an estate agent assists the seller in completing the form then the Property Misdescriptions Act applies.
We provide three options for our clients – hard copy and Adobe PDF format (a branded version is now available on our website: www.thepartnershiplimited.com/Documents/piq.pdf) and from 1st March, a web-based alternative will be in place.
Energy Performance Certificate rules
All commercial and residential properties (with a few exceptions) now need an Energy Performance Certificate (EPC) when they are marketed for sale or rent irrespective of when marketing has commenced. However, an interesting exemption has been determined for those without any heat source. Under the enabling legislation (The Energy Performance of Buildings Regulations) the law defines a building as being one whose climate is controlled by energy. Therefore, it appears that if a property is not climatically controlled, it does not qualify as a building and will not need an EPC. It should be noted that this does not apply with predicted energy assessments, i.e. where the developer has specifically designated a heating source, which may not have been installed yet but there are plans to do so.
Existing properties taken off the market
If a property with a HIP is taken off the market a year after it was first marketed for sale, some content must be refreshed if the property is subsequently remarketed. This includes title documentation and searches, which will naturally require an update to the index. As EPCs last for 10 years and may be up to 3 years old on inclusion in a HIP, obviously these need not be updated as they will be at most 18 months old.
To ensure our clients are aware of any potential breach caused by this, from February 1st we will be launching a new email reminder service which will send an email a month before the year’s anniversary of the date that the HIP was commissioned, warning that if the property has been taken off the market with plans to remarket it then new documentation will be required.
Property Information Questionnaire
Any doubt about the government’s intention to press ahead with the changes in April were put aside last week when the law was quietly changed to dictate that the PIQ is required before a property may be marketed for sale. Sellers must complete the questionnaire and it must be included in the HIP before marketing may commence. It is important to note that if an estate agent assists the seller in completing the form then the Property Misdescriptions Act applies.
We provide three options for our clients – hard copy and Adobe PDF format (a branded version is now available on our website: www.thepartnershiplimited.com/Documents/piq.pdf) and from 1st March, a web-based alternative will be in place.
Energy Performance Certificate rules
All commercial and residential properties (with a few exceptions) now need an Energy Performance Certificate (EPC) when they are marketed for sale or rent irrespective of when marketing has commenced. However, an interesting exemption has been determined for those without any heat source. Under the enabling legislation (The Energy Performance of Buildings Regulations) the law defines a building as being one whose climate is controlled by energy. Therefore, it appears that if a property is not climatically controlled, it does not qualify as a building and will not need an EPC. It should be noted that this does not apply with predicted energy assessments, i.e. where the developer has specifically designated a heating source, which may not have been installed yet but there are plans to do so.
Existing properties taken off the market
If a property with a HIP is taken off the market a year after it was first marketed for sale, some content must be refreshed if the property is subsequently remarketed. This includes title documentation and searches, which will naturally require an update to the index. As EPCs last for 10 years and may be up to 3 years old on inclusion in a HIP, obviously these need not be updated as they will be at most 18 months old.
To ensure our clients are aware of any potential breach caused by this, from February 1st we will be launching a new email reminder service which will send an email a month before the year’s anniversary of the date that the HIP was commissioned, warning that if the property has been taken off the market with plans to remarket it then new documentation will be required.
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