The Government has rejected a petition, containing 1,694 signatures, which called for them to drop their plans to end "first day marketing" as part of the full implementation of Home Information Packs (HIPs).
At present the current legislation only requires a seller or agent to order a HIP prior to marketing of the property but this has always been a concession which was part of the HIP transition plan.
After April 5th, any 'responsible person' (seller, agent or anyone representing the seller) marketing a property prior to having a completed HIP could face a £200 fine from a Trading Standards Officer. This fine can be enforced each and every time the property is marketed without the HIP so in theory the individual (or company) could receive multiple fines for the same property.
Some Estate Agents are concerned that the full implementation of HIPs will delay the sale process and stop people 'dipping their toes' in the market. It can be argued that the current state of the market prevents speculative sellers entering the market anyway due to the reduction in value of their property.
Sellers will continue to have a further 28 day grace period to include documents that may take longer to obtain, such as the local authority search.
The speed in which a HIP can be completed often is dependent upon the time it takes for the searches to be complete. For years Local Authorities have restricted the access of search companies to their records so with the new legislation they will come under pressure to improve their systems and allow faster and greater access to records.
HIPs provide more information upfront for the potential purchaser. They have been blamed for some of the decline in the property market but when you consider they contain mostly documents that are required as part of the buying process anyway plus an Energy Performance Certificate (which is required as part of a European Directive) it seems they have simply been made a scape goat.
Comments
Post new comment