• JDB Home Information Packs HIPs
• All Change!
• What's changing?
• First Day Marketing Property Information Questionnaire (PIQ)
• Searches
• What impact will this have?
• What should I expect from my HIP Provider?
• What do the changes mean for me?

 

JDB Home Information Packs

In August 2007, the government introduced Home Information Packs (HIPs) for houses with four bedrooms or more. This was extending in September 2007 to include all properties with the exception of newly built properties, a HIP for which will be required from 6/04/08 (the date is still to be confirmed by the Government).

A HIP is required before you can commence marketing your property either privately or through an estate agent.

A HIP includes many sections such as:

• Energy Performance Certificate or Home Condition Report
• Sale Statement
• Evidence of Title
• Searches
• Other Information
• Conveyancing

The JDB HIP can be produced speedily, in most cases within seven days of instruction. This will then enable you to confidently market your property legally. The HIP is owned by the homeowner until a sale is agreed and can, therefore, be used with different estate agents should you change your agent during the sales process.

Our HIP is also very competitive at £279 + VAT payable on instruction. We also offer a deferred payment HIP where the fee of £299 + VAT is payable on completion of the sale or nine months after instruction, whichever is the sooner.

HIPS and Conveyancing are not regulated by the Financial Services Authority.

HIPs - All Change!
If black was deemed to be the chosen colour for HIP Providers in 2008, in mourning for the market, then 2009’s colour of choice is undoubtedly grey. Let me tell you why.

On 8th December 2008 and 21 January 2009 there were further amendments to the HIP Regulations. These changes take effect from 6/04/09.

However despite being just a couple of weeks away there are still several “grey” areas the majority of which fall around local authority and personal searches. The only definite appears to be that the changes WILL come in on the date planned.

Home of Choice mortgage advisers should be aware of the changes as it is likely that consumers will come to them for advice, particularly concerning the completion of the new Property Information Questionnaire (PIQ) which will now form part of the HIP.

Due to the "grey" nature still of some of the changes to HIPs we would recommend you sign up for regular updates from a HIP provider so that you are fully informed by the 6th.

What's changing?
Here are a summary of changes that will come into effect from 06/04/09.

First Day Marketing
From 6/04/09 a completed HIP will be required before a property can be marketed for sale (known as First Day Marketing). At present marketing can begin once an order has been placed and commitment to pay for the hip made.
Prior to marketing a property from 6/4/09 the hip must be contain:-

1. An index (existing)
   
2. A sale statement (existing)
   
3. An energy performance certificate (existing)
   
4. Land registry title documents and plan (existing)
   
5. A copy of the lease where the property is leasehold (existing)
   
6. A Property Information Questionnaire (new)

Searches need to have been ordered but do not need to have been received to release the HIP.

Property Information Questionnaire (PIQ)
A form called a Property Information Questionnaire (PIQ) is a new document which must be included within the hip. The CLG have prescribed the questions that will be asked and the order they will be asked in but each HIP provider is likely to have a different format.

The PIQ includes 17 questions for freehold properties and 27 for leasehold properties and therefore customers are expected to need some help in completing the form. The broad subject matters include Utilities information, Changes to the Property, Access, Other relevant information and for Leasehold Properties information regarding the lease.

Examples of questions required to be answered are as follows:

When was the property purchased?

What council tax band does the property fall in?

Have you carried out any structural alterations?

How long has your lease left to run?

Most of the questions have a “don’t know” option but must be answered truthfully, accurately and to the best of the sellers knowledge. It will not be acceptable to answer a series of “don’t knows”.

Interestingly the PIQ does not require a signature.

The HIP Code specifically advises estate agents about their responsibilities in relation to completing the PIQ under the Property Mis-descriptions Act 1991. Estate agents should therefore not complete the form themselves or help the vendor in completing the form or they may be liable to fines under the PMA. Estate agents should instead choose a HIP Provider who takes responsibility for arranging for the form to be completed and have a range of options to do so.

Searches
There are big changes within the search industry from 6/04/09.

Firstly, the way local authorities charge for searches, and charge personal search providers for accessing information will change from 06/04/09.

Secondly the transitional insurance cover provisions will be removed from 6/4/09. The search enquiries will need to be answered, rather than insured over.

Lastly the HIP must include evidence that searches have been ordered but the results do not need to have been received prior to First Day Marketing.

What impact will this have?
The following outcomes are possible as a result of the changes:

There will be a delay in marketing the property until a hip for the property is compiled.

Overall, the cost of a search whether carried out by a personal search company or a local authority, will increase and therefore the cost of a hip will increase.

There will be a wide disparity of prices dependent on which local authority the property falls into and the cost of a hip is likely to be a variable cost of a hip plus search as opposed to a nationwide standard fee.

There will be increase in Trading Standards activity ensuring that hips, and the searches within those hips are compliant.

What should I expect from my HIP Provider?
Regular updates on how they are going to deal with the impending changes.#

Confirmation that their chosen search company provides searches that are compliant post 6/04/09.

A variety of options to complete the PIQ to include online, e mail, fax and telephone.

Customer support for completion of the PIQ.

Turnaround times for compilation of the hip to include the epc and PIQ

Ability to trial the inclusion of the PIQ prior to 6/04/09

Account Management and Staff training prior to 6/04/09

Deferred payment facility as the cost of a HIP is expected to rise

A complimentary conveyancing service to maximize income to you and minimize inconvenience to the customer.

What do the changes mean for me?
A customer may ask help from you to complete the Property Information Questionnaire. Their estate agent is unlikely to help them as aiding a client to complete the form falls within the Property Mis-descriptions Act 1991.

For mortgage advisers wishing to form partnerships with local estate agents this is a prime time to approach them as due to the grey nature of the regulations there has been a distinct lack of communication regarding the new requirements. Estate agents are also nervous about completing the PIQ for the reasons explained above. Estate agents are therefore thirsty for any information they can get and a helpful local mortgage adviser who can provide them with this information and assist the customer in aspects of completing the PIQ (where required) may be worth their weight in gold.

HIPS are not available through Home of Choice Ltd