Estate agents could risk prosecution because of unscrupulous Home Information Pack providers who rely on cheap personal searches.
The claim comes from Peter Ambrose, founder of niche HIP provider The Partnership, which has always insisted on using official searches only.
Ambrose said that regulations designed to protect consumers appear to being flouted on a daily basis. He said there were implications for agents if personal searches contain incomplete information, even if the personal search firms rely on insurance policies.
He said the situation had been brought about by a combination of a lack of legal knowledge and understanding, and a focus on keeping costs to an absolute minimum.
Ambrose said: “We have always been concerned about quality control. Given the number of low-cost providers now going out of business, it is only a matter of time before unhappy clients try to pursue estate agents for reimbursement of fees for the searches that buyers are now demanding.
“For too long, companies have used the insurance provision in HIPs to avoid collecting data, even when it was made available for free. For example, even though Wakefield Council makes this additional information freely available, less than 1.5% of personal search agents bothered to take it.
“Many providers have complained that local authorities make it difficult to obtain the information, when in reality it is the personal search company’s own demands for a low-price service that has resulted in them not bothering to obtain the information.”
He described personal searches as flawed products and called on the Government to remove the insurance provision and reconsider their suitability for use within a HIP.
Agents at risk over sloppy HIPs warning
Latest Features
-
Property Natter - Here comes Summer.... or maybe Autumn?
We all know that first-time buyers have had a tough time...
-
Renters Reform? What about the tax bill?
There was a long-awaited return to the House of Commons this...
-
Clarity needed on Leasehold and Freehold Reform Bill report
Last weekend a story by The Sunday Times’ Deputy Political Editor...
Sponsored Content
-
%20(002).png)
Revolutionise Property Listings With Our New AI-Powered Description Generator...
In today's fast-paced and ever-evolving property industry, it’s essential that forward-thinking...
-
Why do agents outsource their calls ...
As estate agents, it is important to make sure that your...
-
How to deal with damp and mould in rented...
There are a few common questions that arise when the issue...
-
AML warning as hundreds of agents hit with HMRC fines
An anti-money laundering (AML) expert has queried why there is a...
-
Industry Views - Airbnb Crackdown - this time it's not just Michael Gove...
It’s tempting to think that Michael Gove’s proposed clampdown on Airbnb-style...
-
Property Natter - Buyers 'tak' the high road to stronger market
When we talk in general terms about the UK housing market,...
-
Law Society faces backlash over material information forms
The Law Society is facing backlash from conveyancers after issuing new...
-
AML warning as hundreds of agents hit with HMRC fines
An anti-money laundering (AML) expert has queried why there is a...
-
Average estate agent fees hit £4,500 to £10,300 - claim
A new analysis of the cost-of-moving suggests that the typical seller...
60 second interview
Jake Gann, Sales Director at Bamboo Auction
Who are you and what does it say on...
Ashley Day - Director of Bristol Property Centre
Who are you, and what does it say on...
Graham Paterson ‘Co-founder and CEO of Jitty’
Who are you and what does it say on your...
Comments
If you want a reliable HIP provider who has proven they can provide compliant HIPs, then use an IPPA member - IPPA are the only organisation that check a company's HIPs are compliant before membership is granted.
Just in response to Nick - not sure what he means by johny (sic) come lately - we've been in business four years, were on the government's early adopter panel and our work is validated and relied upon by the leading legal training provider in the market. In terms of facts - the local land charges officer of Wakefield will confirm their pricing if you call.
AndrewM - thank you for your comments - I stand by my position that despite what the law says, clients WILL pursue agents if the provider disappears.
In answer to Rebel about the LawPack kit - it is not hypocritical at all. In the pack, we explain about the pitfalls of personal searches, and the predictability of authorised searches. Where is the conflict here?
to AndrewM
should have gone with PSG! they are fine with us!
This touches a nerve. We used 1stforhips (because the add ons and the referral fee was so attractive) who have now disappeared and have taken the money (from our clients) but not provided the goods - Fraud. Trouble is we the agent (not the client and not the HIP provider) are the only people who can be fined - £200 a day. Funny old world.
Is this the same Peter Ambrose that authored Lawpack's consumer DIY HIP pack? Rank hypocrisy.
Niche who? I have been using Pali for searches since 1999 no probs. I now use them for Hips also no probs. They are not the cheapest but they are great.
Absolutely typical drivel from a johny come lately company that does not know the facts. Wakefield will not let you view Building regs but will charge £20 for the info. Also they will charge £15 for traffic schemes. It is not the search companies that demand a low price it is the consumer and the estate agents. Nobody wants the Hip but the personal search companies get the blame.
OyezStraker/Hipag then!
I am a qualified conveyancing lawyer with 25 years experience, I have a separate agency business with 4 offices. My advice is do not use any of the new boys on the block for HIPs - only use a long established firm like JORDANS - probably the oldest Law Stationer in the Country. The packs are not really anymore expensive and are guaranteed compliant from people who actually understand what they are doing. I would recommend them every time for nothing.
where in the legislation says that personal searches are illegal?
Why should the estate agent take the flack for the irresponsible government not making it clear which searches should be included in the first place? Also HIPs are totaly a waste of time and energy as the EEC only mandated EPCs are needed and for 2009 onwards, and buyers are still not interested.
Rob, Dave will simply say that everyone in the country has to get an EPC, thus abolishing the need for the current cloaking device/vehicle. Conveyancers will get back to doing what they do. You can carry on trading as an EPC arranger though, so no need to worry. Just have an exit strategy for when every property has had their inspection.
Why? That is not good client advice every single time.
I queried the legality of the personal searches with one firm offering HIPS for £169 compared to my regular provider who charged £250. I then checked out the response with a solicitor and he said 'we get all of our clients to redo them anyway'!
Peter is scaremongering. Twenty five years as a coveyancer tells me personal searches, from reputable companies, are fine. If "call me Dave" does abolish Hips they will be replaced with an "information up front" pack. Spot the similarity? Hip providers to use are AHIPP members and those signed up to the Hip code.
Could anyone enlighten agents as to which HIP providers to name, shame and avoid?????
With a general election in June and Dave C proposing to abolish HIPs, I wouldn't be too concerned at this stage. Unless you're a HIP provider of course.