Message CLG regarding Home Information Packs
It has come to our attention that some HIP providers are including 'Register Views' obtained from Land Registry Direct as evidence of title for the purposes of regulation 8(e) of the Home Information Pack (No.2) Regulations 2007. However the regulation requires the inclusion of an 'official copy' of the individual register and title plan and a register view is not sufficient for these purposes in our view.
Official copies are required as these are encrypted documents that the Land Registry will stand by - if there are any errors in the register for example - and are therefore acceptable during the conveyancing process. Although the information they contain is similar, register views have no such status. Back to top
Reform of the property searches market
What are property searches?
Property searches provide buyers, sellers and conveyancers with information about the property and the surrounding area, in particular whether there are limitations or factors that may affect, or are about to affect, the property.
There are three searches that must be included in a HIP:
a search of the Local Land Charges Register (LLCR);
a Local Enquiries search (specified under schedule 7 of the Regulations); and
a drainage and water search (specified under schedule 8 of the Regulations).
HIPs and searches
HIPs do not essentially change the information that is required during the house buying process. However, they do introduce two important changes to the process:
the mandatory searches are provided by the seller on marketing the property, making this information available at an early stage in the process so that potential buyers can make informed decisions; and
the HIPs Regulations introduce new standards for all those compiling searches, in particular they require the search provider to provide details of who is liable for any issues arising from the search, such as incorrect information, and search providers are required to have comprehensive insurance liability to cover any such an event.
Property searches can be obtained from three sources — Local Authorities (who hold the data necessary to complete a property search), Private Search Companies and the National Land Information Service.
Reform of the property searches market
In late 2005 the Office of Fair Trading carried out a study of the property search market and, while it found that many aspects were working well, it made a number of recommendations for improvement — with the ultimate aim of a level playing field for competition to deliver benefits in quality, speed and price for consumers. In particular, there was need to improve access to Local Authority-held information and there needed to be greater clarity about how Local Authorities should charge for the data where this was appropriate. Communities and Local Government has been working with both the private sector and Local Authorities in implementing the changes recommended by OFT and two important guidance documents were published on 18 January 2008, one on access to data and one on charges for the data.
Improved access to data
The new 18 Jan guidance document Personal searches of the local land charges register and other records held by Local Authorities sets out good practice guidance for LAs and personal searchers to work together to improve access to all the data necessary to complete a property search compliant with the HIPs Regulations. In particular it seeks to promote prompt access to the data for personal searchers, i.e. within 1–3 working days.
Download a copy of Good Practice Guidance:
http://www.home-information.info/doc?id=128
Fair and transparent charges
Linked to the access guidance is the issue of fair and transparent charging for data. CLG’s 18 Jan consultation document (CD) sets out proposals for the future of LA charges for the delivery of property search services. Broadly the CD seeks views on:
LAs setting fees for the provision of ‘unrefined’ data (i.e. the raw data from which a search is compiled) based on cost recovery including supporting draft guidance;
whether LAs should set fees for provision of ‘refined’ data (i.e. the compiled search) on a price competed basis in the market?
potential changes to the legal framework relevant to property searches to provide clarity and facilitate any changes necessary to deliver the proposals in the CD;
how Government might best promote full electronic provision of property searches?; and
future arrangements covering the fee for a personal search of the local land charges register (LLCR) i.e. whether in the future this should be devolved to LAs to set on a cost recovery basis and whether the present centrally set £11 fee for a personal search of the LLCR should be changed?
The consultation closes on 18 April 2008. Download the consultation document at:
http://www.home-information.info/doc?id=129
Together these two documents aim to create a more competitive property searches market as envisaged by the OFT, leading to improved benefits for consumers on quality, speed and costs.
To read the CLG press notice, please visit http://www.communities.gov.uk/news/housing/666323 Back to top
HIP Exceptins
Home Information Pack duties have applied to all residential properties in England and Wales marketed since 14 December 2007. The vast majority of sales of residential properties will be subject to these duties, but there are some exceptions.
In response to enquiries from stakeholders and members of the public, this issue of Progress takes a closer look at why HIP regulations allow for some exceptions and lists the kinds of sales to which these exceptions apply.
Exceptions are intended to ensure that sales that are not part of the ‘standard’ housing market are unaffected by the HIP duties, although some apply specifically to properties which were already on the market when the HIP duties commenced. There is also a temporary exemption from the duty to have a pack in place before marketing begins but only where the required documents have been requested.
Properties marketed before the commencement dates:
There is special provision for excluding properties marketed before the HIP duties came into force for a particular category of property:
1 Aug 2007 — sales of homes with four or more bedrooms
10 Sep 2007 — sales of homes with three or more bedrooms
14 Dec 2007 — sales of homes with one or two bedrooms
Residential properties not available for sale with vacant possession:
Where a residential property is not available for sale with vacant possession HIP regulations will not apply. However, this exception will not apply where two or more dwellings in a sub-divided building that was originally built as a single dwelling are being marketed as a single property and one or more is not available with vacant possession.
Seasonal and holiday accommodation:
There is no requirement to provide a HIP where there is a planning restriction which either limits the occupancy of the property to 11 months or less in a 12 month period, or limits the use of the property to holiday accommodation.
Mixed sales:
The duty to have a HIP does not apply to a ‘mixed sale’. This applies where a residential property is marketed for sale as ‘ancillary’ to (i.e. is intended to be occupied and enjoyed with) one or more other buildings or areas of land used for non-residential purposes. Examples of mixed sales include a farm house sold with agricultural land and buildings, or a property consisting of a shop on one floor and a flat above it. The exception for a mixed sale only applies if at the time of first marketing, the marketing material makes it clear to potential buyers that the seller only intends to accept an offer for the property as one lot.
Dual use of a dwelling/house:
The HIP duties do not apply to properties that have a ‘dual use’ and can be used for both residential and non-residential purposes simultaneously. An example of dual use would be a house that has been divided and where one part is used as a dentist’s surgery and the other part serves as the dentist’s home.
Portfolios of properties:
Duties do not apply where one or more residential properties are marketed for sale together if the seller does not intend to accept a sale in isolation from the others, and it is clear from marketing materials that offers will only be accepted for the complete portfolio.
Unsafe properties:
A HIP is not required when marketing an unoccupied property that is unsafe, posing a serious risk to the health and safety of potential occupants and visitors, and this is made clear in the marketing material.
Properties due to be demolished:
A Home Information Pack is not required when marketing a property intended for demolition and redevelopment. This applies where the relevant planning permission has been obtained.
Park homes:
Park homes are not treated as ‘dwelling houses’ under the terms of housing legislation and therefore fall outside the scope of the HIP regulations.
New Builds:
Although sales of homes built to the most recent Building Regulations (Regulation 17C, Part L, 2006) are currently exempt from the need to have a HIP, this is set to change later in 2008. For more detailed information on new builds, click here.
NOTE: The above is only intended to be an indicative list of the circumstances under which HIP regulations do not apply. For detailed information on exceptions the above should be read in conjunction with:
Taken from http://www.home-information.info
Back to top
HIPS becomes law for 1 & 2 bed homes on 14th December 2007
Home Information Packs become law for 1 & 2 bedroom homes this Thursday at Midnight.
From Friday 14th December any home new to
market will require a HIP at a cost of around £350, plus there is a £200 fine every time you are caught marketing your home without a HIP.
BEAT THE DEADLINE...
However, if you 1 or 2 bed property is on the market before 14th December, then you will not require a HIP saving you £££'s.
To comply a property must be continuously marketed from at least the 13th December with no break in marketing. A break of even just one day from 14th Dec will then trigger the requirement for a HIP.
Simply advertise you home on www.homesaint.co.uk before midnight this Thursday. Both of our packages ensure your property will be continuously marketed. Create a new advert online now.
If you already have an advert, simply login to your account and ensure your advert is live or upgrade to our Premium package for piece of mind. Back to top
BBC - The secret agent
Lying to customers, faked signatures, false passports and dodgy deals with developers. An undercover investigation reveals the secret world of Estate Agents' dirty tricks. Read the full story
Back to top
BBC Q&A: Estate agents and you
A useful news story from the BBC regarding the practive of Estate Agents... Read the full story
Back to top
Home Information Pack Update: 3 Bedroom Homes Are Now Included
From today 10 September, all homes in England and Wales marketed with 3 or more bedrooms will require a Home Information Pack (HIP), to be provided to prospective buyers
CLG today released a press release to mark the second phase of the implementation for HIPs. To read the press release go to http://www.homeinformationpacks.gov.uk/industry/120_press_notices.html
Back to top
Selling Property Privately In The UK
An article written by industry insiders from theadvisory.co.uk.
First, let us make a few things perfectly clear about selling your home without an Estate Agent It can and is done all the time, all across the UK! It is not difficult to do and you don’t need any special expertise! Using an Estate Agent will not guarantee that you sell for more!
Selling property advice
Many people feel strongly that most Estate Agents don’t deserve the fees they charge
Property prices have risen dramatically over the last decade. Seeing as Estate Agency fees are based on the percentage of your sale price, Estate Agents are making a killing (over £4 billion last year). Are they working any harder for their money? Are they providing consumers with a better service? The evidence presented earlier suggests that they are not.The truth is, selling a property is not difficult. There’s certainly no mystery to it and you don’t need the sales skills of Arthur Daley to get the best possible price.
Selling your home
1. Price the property competitively (use Estate Agents for this, they’re free)
2. Present the property well (no one is going to pay you top dollar for a dump)
3. Take your pick of the marketing options that are available to today’s private seller
4. Find a decent conveyacer to take care of the legals & process the transaction
That is it! When you get these fundamentals right, property sells it’s self. Don’t let any estate agent scare you into believing otherwise.
Why Should You Sell Your Property Privately?
The main benefit is the £1000’s of pounds you save in Estate Agents fees. To give yourself the absolute best chance selling privately we’d say that you should put aside a marketing budget of around £500 (it is of course possible to do it for less than this).
More Benefits to Selling Houses Privately
By selling your property privately you can also look forward to:
• Taking control of your sale (being in the driving seat).
• Receiving direct and immediate feedback on all aspects of your sale.
• Not having to rely on the word of your Agent for updates (there will be no Chinese whispers, brush-off’s, excuses or lies)
• Knowing that your sale is receiving the attention it deserves.
• Probably achieving the highest possible sale price.
That last point deserves a fuller explanation. You see, for many Estate Agents, a sale is a sale. They get paid no matter what price is finally agreed.
The harsh reality of estate agency is that the effort involved in negotiating an extra £5,000 -£10,000 for you will only and an extra £100 – £200 on to the estate agent’s bill.
It’s not much of an incentive for an Estate Agent to go the extra mile and fight for your best price once an adequate offer has been presented.
The recent bestseller by Steven J. Levitt (winner of the “John Bates Clark Medal”, awarded to the best American economist under 40) on modern economics called Freakonomics has even shown scientific proof of this.
They forecast that by 2010 nearly half (that’s 700,000) of all property sold in the UK each year will be without the help of a traditional Estate Agent.
Now, that’s got to be bad news for the element of rogue Estate Agents out there!
For more from The Advisory visit their website at: http://www.theadvisory.co.uk. Back to top
Home Information Pack Update: Next Stage Announced
CLG has today issued a press release announcing the next phase of the roll-out of Home Information Packs. This means that homes with 3 or more bedrooms marketed for sale from 10 September will require a HIP.
NEXT STAGE FOR HOME INFORMATION PACKS AND ENERGY PERFORMANCE CERTIFICATES ANNOUNCED
August 17, 2007
The Government has today announced that Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) will be rolled out to three bedroom properties from September 10.
HIPs and EPCs are being introduced on a phased basis to ensure a smooth transition in the housing market, and to begin the process of transforming the home buying and selling process in the interests of consumers and the environment at the earliest opportunity.
Following the introduction of the packs for homes with four bedrooms and above on August 1, the Government has today confirmed there will be enough energy assessors, nationally and regionally, to roll out to three bedroom homes next month, having taken into account the operation of HIPs in the market.
HIPs and EPCs will give house buyers energy ratings for homes for the first time, from A to G - similar to consumer friendly ratings for fridges, helping to lower fuel bills and reduce carbon emissions. The packs will also help to cut costs for consumers by increasing transparency and competition in the home buying and selling process.
A further announcement on rolling out HIPs and EPCs to other properties will be made in due course. Our key criteria will be ensuring a smooth implementation and that the necessary energy assessors, both nationally and regionally, are in place.
Communities Minister Baroness Andrews said:
"We are now ready to start rolling out HIPs and EPCs to the next part of the market as promised, and improve a home buying and selling process which currently is not working for consumers or the environment."
"HIPs and EPCs can help families to save hundreds of pounds off their fuel bills, and cut a million tonnes of carbon a year. They also have the potential to reduce the millions of pounds wasted by consumers when buying and selling a home, by increasing transparency and competition in a process that hasn't changed for a generation."
Measures recommended in the EPC could save the average consumer £300 a year off their fuel bills, according to the Energy Saving Trust. Typical 'green grants' of £100 to £300 for energy saving improvements like loft insulation are available for many home owners.
A new system to make it easier for home owners to access these grants from energy suppliers was launched earlier this month. Energy suppliers are providing immediate access and information about green grants and offers to home buyers when they sign up to an energy contract. A new portal on the Energy Saving Trust’s website also allows consumers to tap in their postcode to find out offers available.
A snapshot of leading HIP providers shows packs are taking five days on average to produce. Many major estate agent chains are offering HIPs as part of their ordinary fees. Others are charging in the region of £300 to £350 plus VAT on an upfront or deferred basis - £200 to £250 of which is already paid for in the current system. Back to top
Home Saint Launches Private Property Sales Website
Finally a private property site dedicated to the beautiful South Coast of England has arrived!
Home Saint is the brainchild of two savvy south coast property owners who’s passion for this fantastic area led them to launch this private property site.
Why concentrate on just the South Coast? Well, Home Saint aims to help people who want to live in the ‘coastal’ counties of Kent, East Sussex, West Sussex, Hampshire and Dorset. This site simply helps put buyers and sellers in touch with each other without the need for an Estate Agent.
We have extensive knowledge of this region and aim to support local business that can assist in the process of property selling (builders, plumbers, conveyances etc) by recommendation and not paid adverting.
Home Saint is also proud to be an ethically minded company and endeavour to use recycled and sustainable materials in our print and point of sale material. We have also pledged five percent of our advertising profits to the charity ‘Shelter’
South Coast property sellers are more than equipped to sell there own homes. Home Saint just gives you the tools and the resource with a little ’Saintly’ help! Back to top
Complaints Rise Over Estate Agents
Estate agents are beginning to annoy their customers.
Enquiries or complaints about them to the estate agents' regulator have soared by 41% in a single year.
The number of buyers and sellers seeking advice or lodging complaints hit 8,472 in 2006.
Of those, 586 cases were referred for a formal review and 297 were upheld in consumers' favour by the Ombudsman for Estate Agents Christopher Hamer.
The number of investigations launched was up 18% year-on-year.
Taken from: http://news.sky.com/skynews/article/0,,30400-1266997,00.html Wednesday May 23, 2007 Back to top
|
