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.
