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.
