Paul Sailes

Recent Posts by Paul Sailes

• Property Information Questionnaire (PIQ) - Are you ready ?
• HIP changes from 6th April 2009

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HIP changes from 6th April 2009

As of yesterday we now have some subtle changes to the Home Information Pack legislation that could bring added benefit to the exisiting HIP via some modifications including the Property Information Questionnaire (PIQ) which is now a required document. From the 6th April 2009 the Home Information Pack regulations will change to include:

• Introduction of the new Property Information Questionnaire - PIQ

• Removal of the temporary first day marketing exemption

• All searches, whether produced by a local authority or a search company, must be complete with no gaps in the data covered by insurance.

To be able to market your property the following documents must be in place and available:

• Index

• Property Information Questionnaire (PIQ)

• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) for new homes marketed before completion

• Sustainability information (new homes only)

• Sales Statement

• Evidence of Title - HMLR Title Plan and Register. For unregistered properties a search of the index map must be included.

The remaining documents namely the standard searches, a copy of the lease and unregistered documentation (where necessary) must be completed and included in the HIP within 28 days. The response to date has been mixed as one has come to expect with HIPs. It has been reported that even the National Association of Estate agents (NAEA) who have been generally anti-HIPs have soften their view, though mainly towards the introduction of the PIQ.

Chris Brown, President of the National Association of Estate Agents (NAEA) said;

"On the basis that local searches were moved back in the process, we did agree that consideration should be given to the introduction of a PIQ."

The full statement can be read on the Mortgage Strategy site.

Marc Goldberg, head of residential sales at Hamptons International, says:

“The timing is curious but the principle is sound. Ultimately, we hope that transparency will lower the fall-through rate, when buyers change their minds as they unearth more details. In the long-run, Hips should speed up the sales process.”

Criticism has been made that the Home Information Pack does not provide a great wealth of information to the 'typical' buyer which the Property Information Questionnaire certainly helps to tackle.

The changes detailed above are not to be feared but embraced. Lets welcome positive change, improvements and the development of the home buying and selling process.

Property Information Questionnaire (PIQ) - Are you ready ?

The Property Information Questionnaire (PIQ) will be shortly rolled out after the draft version was produced and the related consultation was completed and added to the legislation.

There does not seem to have been vast modification to the document and legislation since we published the last article regarding the Property Information Questionnaire in August. However, the planned implementation of the PIQ was intended for the the 1st January 2009 however this has been delayed to 6th April 2009 to allow the industry to prepare for the addition to the Home Information Pack Legislation.

The ‘new’ HIP requirement has not been widely reported and awareness does seem to range from ‘quite aware’ to ‘what are you talking about?’ Some people will be aware of the Home Use Form which due to problems with some of the information requested was made a voluntary document within the HIP. Comparisions can be made between the two documents; however, the PIQ will be a mandatory requirement within the Home Information Pack when the implementation date is reached.

Is the PIQ going to dramatically change Home Information Packs? No, probably not. However, It will provide additional relevant information of interest to the prospective home buyer which many critics have complained the home information pack has not done so far.

When you take a look over the questions which are required to be answered you will quickly see that they are relatively straight forward and easily answered on the whole. It is not anticipated that any specialist knowledge will be required to complete the Property Information Questionnaire (PIQ).

For buyers - the PIQ will give some great information on practical issues/points related to the property in question, which will help make an informed decision on the prospective purchase.

For sellers - it will give the opportunity to provide upfront information about the property which may either further attract interest or assist in preventing sales falling through at the last minute.

For estate agents - it may give rise to a very small amount of extra ‘work’ as they could be asked by their HIP provider to distribute a hard copy of the form if an electronic solution for completion is not appropriate.

For conveyancers - there is no need to fear the PIQ, it is not intended to replace the work they or other property proffsionals carry out.

As the critiques of Home Information Packs resistance relaxes the Property Information Questionnaire (PIQ) further embeds its value. I look forward to the continued development of the HIP and the added benefits the PIQ could bring.

Source : HIP-Consultant.co.uk

10 Myths of Home Information Packs (HIP)

Home Information Packs (HIP) are becoming more widely accepted since the first date of implementation. However, with the Home Information Pack's existence also comes some fallacies and myths which have been attached to them. Due to this we have decided to look at a selection of some commonly held misconceptions and some of the more unusual ones we have come across.

1. HIP stands for and is an abbreviation for Home Improvement Pack.

This a common mistake many make and one can certainly be forgiven for holding this belief. This error was recently made by the Communities and Local Government (CLG) when publishing a guidance document on Home Information Packs within their website. It has since been rectified.

2. A HIP only last for 12 months and then it must be renewed.

As long as the property is continually marketed (this does not have to be via the same agent) the HIP remains valid.

3. If my property doesn't sell I do not have to pay for the Home Information Pack.

There are various payment options available when purchasing your Home Information Pack; including an upfront payment and quite often a deferred payment option. With both of these payment options you will ultimately need to pay for your Home Information Pack whether your property sells or you choose to take your house off the market.

There has recently been promotion of a ‘no sale, no fee HIP' which does potentially mean if your property does not sell you may not have to pay. However, there is a large extra cost implication involved and quite complex terms and conditions attached to this payment option. Some terms related to this option dictates the pricing of your property in a falling market. Please read these terms and conditions carefully before entering to such an agreement

4. Home Information Packs are an increased cost in the buying and selling process.

It is true if you are selling a property without buying a property there is a ‘new' cost in the selling process though this should not translate into large increased overall costs. However, if you are buying and also selling a property as is the ‘normal' transaction, Home Information Packs costs negate themselves between the buyer and seller.

Due to the new Home Information Pack legislation organisations have been forced to streamline their operations in a slowing property market often reducing their costs which have ultimately been passed on to the end consumer. For e.g. search companies and local authorities have had pressure applied to reduce their costs to the consumer and also to increase their speed and efficiency returning information requested. This a direct result of Home Information Pack legislation.

5. Home Information Packs duplicate the work my solicitor will do, so I will pay twice.

The Home Information Pack provides official documentation which has always been required when selling your property for e.g. Land Registry documentation and the water & drainage search. There is no reason for this information to be supplied twice and the main difference it is now supplied at the start of the home buying and selling process.

You may be asked by your conveyance to pay for regional specific searches such as a Coal Mining Search in addition to the mandatory search provided within the HIP. If you prefer you can quite routinely order these ‘extra' searches via your HIP provider.

Many conveyancers have reduced their costs associated with the buying and selling process due to the Home Information Pack being immediately available as this has reduced the time they required; though some, not surprisingly have not.

6. Home Information Packs are added bureaucracy and do not hold any importance.

We have often read and hear that the only document contained within the HIP of any interest to the buyer is the Energy Performance Certificate. The EPC shows good relevant information in a user friendly format the energy efficiency of the property.

Whilst there are plans to increase the added ‘usefulness' of the information to the prospective buyer through various methods including the Property Information Questionnaire; the existing documents importance must not be disregarded. As stated above many of the documents within the Home Information Pack have always been required and considered essential by conveyancers though may not make particularly interesting reading to the home buyer.

7. Home Information Packs must be bought via an estate agent

Estate agents can arrange your Home Information Pack quite routinely on behalf of you, though it is quite unlikely that they are preparing the documentation in-house. Most agents have connections with a specialist provider who will prepare the Home Information Pack.

As is common, not just in this market; going direct and commissioning a Home Information Pack direct from a HIP provider may save you money.

8. The HIP doesn't need to be completed until I have accepted an offer.

This statement is contrary to one of the main concepts of the HIP i.e. having the required information prepared to enable a smooth buying and selling process to take place therefore speeding up the process. Only completing the HIP once an offer has been accepted returns us to the position we were in prior to HIPs introduction with unexpected delays that can easily hold the sale up.

At the time of writing you can market your property IF you have ordered your Home Information Pack as per the first day marketing exception currently in place. This exception is currently under review at present, with an announcement expected shortly in regard to whether this will remain or be removed as was originally planned.

The time taken from ordering of your HIP to competition should generally be no more than 5-10 days and this is a question that should be asked of your prospective HIP provider.

If you have not ordered a Home Information Pack and can not prove so, you are NOT legally allowed to market your property.

9. HIPS are the reason the UK housing market has slowed down.

This is a myth that we felt must include but it is hard to find words for such a far fetched concept. How can Home Information Pack documentation which commonly costs £250 -£400 and provides useful required and essential information in the property buying and selling process cause such a slow down in the UK Property market?

10. Every property now requires a HIP if it is to be marketed.

Whilst it is true that the initial roll out of the HIP legislation via number of bedrooms has been completed i.e. number of bedrooms does no longer determine whether a property requires a HIP; there are still some HIP exclusions. For e.g. a private, non-marketed sale and mixed use properties remain exempt from requiring a HIP. More reading on Home Information Pack exclusions can be found here.

HIP-Consultant.co.uk have supplied many Home Information Packs and we are confident that we have aided sales completing successfully on time due to identification of issues and taking the appropriate action; to the benefit of our clients and those connected with the sale.

Home Information Packs continue to receive a bad press from the ‘usual' regular critics. However, they remain and it seems as if they will become established in the UK's Property buying and selling process. Ultimately, the ‘finished' product may not be as we see it now but what successful product or service does not seek to evolve or improve?

We look forward to your comments and hearing any others myths you have come accross.

Also, thanks to the TheMoveChannel.com for inviting us to blog on their site.

Source : www.hip-consultant.co.uk

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