A pain in the HIP?

03 May 2009



Home Information Packs (HIPs) have been a part of the residential property selling process for nearly 2 years. In light of some changes which came into force on 6 April 2009, Chris Hardy, practice group leader in the B P Collins residential property practice group, reviews the controversial system.

The intention behind their introduction was that, by providing as much information about the property at the outset when an offer is made and accepted, there would be less scope for surprises and delay once the conveyancing process got under way. Exchange of contracts which gives certainty to both seller and buyer would happen more quickly.

From April a seller has to include in the HIP a new form providing more information about the property called a Property Information Questionnaire (PIQ). This will be relied upon by a buyer so if it contain errors or false statements, a seller risks being sued for misrepresentation and having to pay compensation.

Estate agents have generally steered their seller clients to the cheapest HIP provider in order to keep the overall cost to the seller down. Some do an adequate job, but the quality of many that I have seen is such that no buyer’s solicitor could advise a buyer to rely upon some of the information. This then leads to duplication of cost and delays which defeats the main purpose. In more than one case I have seen a HIP which contains a search on the wrong property.

While the estate agent tends to be the first point of contact for a seller and therefore the person who arranges a HIP, we recommend that a seller should now contact his solicitor to arrange the HIP. The questions on the PIQ should be answered with information within the deeds of the property.

Our residential property practice has been established for more than 40 years and with our expert knowledge, we can make sure that the seller provides the correct information and that the PIQ which appears in their HIP is not only professional, speedy and available online for emailing to relevant parties, but very competitive in price.

Please contact a member of our experienced residential property team for guidance on HIPS on 01753 279064 or email resproperty@bpcollins.co.uk.