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Ombudsman deals with HIP complaints

05 November 2008
Written by rosalind renshaw

The Ombudsman for Estate Agents has received 146 inquiries from consumers about Home Information Packs and has now decided on 22 formal disputes.

Ombudsman Christopher Hamer, in his latest report covering the third quarter of the year, says that home sellers often do not understand the agreements they sign covering HIPs.

Hamer said: “In particular, it appears that sellers see the charge for the HIP as simply a fee for selling their property and of course if it doesn’t sell, they do not expect to pay.”

He advises agents that in drawing a client’s attention to the HIP, they should emphasise that it is a legal requirement under the Housing Act 2004; and if the relationship between seller and agent ends, the payment of the fee means the seller gains ownership of the HIP.

Hamer outlines cases in his report where sellers disputed the need to pay for a HIP, but in each case the estate agent’s terms made it obvious that payment would be required for the HIP whether or not the property was sold through them.

He also reminds estate agents that prospective buyers who ask for a copy of a property’s HIP must be given it unless there is good reason not to do so. If that doesn’t happen and he receives a complaint, he is bound by law to report the agent to the Office of Fair Trading, which could have serious consequences for the firm.

He also strongly urges agents not to be drawn into commenting on the contents of the HIP.

Of the 22 formal disputes now resolved, not all were solely related to the HIP but were part of a wider dissatisfaction being expressed by complainants. For example, one complainant asked for the HIP charge to be waived on the grounds that they had received poor quality service during the transaction. The Ombudsman ruled in favour of the agent as the agreement made it clear in what circumstances payment would be due.

As part of a longer complaint, sellers who withdrew their property from the market and were disputing the payment said that the HIP was incomplete. The Ombudsman found that this was because the vendors had cancelled their appointment with the Domestic Energy Assessor, and therefore the HIP lacked an EPC. He did not support this part of their complaint but he did support the complaint that their agent had not shown them the HIP agreement until they asked for it.

With regard to his general workload, Hamer says there has been a slight decline in the number of disputes referred to him compared with the second quarter of 2008, and over the whole year so far cases have been averaging 65 per month, compared with 64 last year.

Lettings cases also dropped during the third quarter of 2008 but over the year as a whole he had received 213 lettings cases, a 15% increase on the whole of 2007.

However, the OEA only started dealing with lettings redress in 2006 and Hamer says the rise in disputes is no more than expected.

During the quarter under review, the OEA received 2,882 initial complaints compared with 3,036 during the second quarter.

Comments

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    My brother's house has been on the market for 12 months. The Estate Agent are now demanding the HIP payment (£517)stating payment after 9 months was in the contract. I cannot believe this is a fair fee or process...

    • 13 February 2009 10:09 AM
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    Hey Mr Brightmove.co.uk. Why don't you leave off for a little while eh? Your inane comments on EVERY single story on EAT are really irritating to those trying to follow important debates. Your site is terrible and has no properties on it. Rather than spending 2 hours a day clogging up EAT with banality why don't you spend some money on web design and try to establish a proper portal.

    • 06 November 2008 02:24 AM
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    The whole point of the HIP is so the current government could argue an increase our council tax. Only one buyer has requested a HIP, Time for a change!

    • 05 November 2008 04:12 AM
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    The whole point of the HIP is to get the EPC into the public domain. The EPC is a EU directive and being carried out across Europe. The main reason for the EPC is making people aware of climate changes and CO2. This is the real reason. The HIP will go and the EPC will remain.

    • 05 November 2008 01:27 AM
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    I think that hips is a waste of time for vendors as well as Estate agents as it costs vendors to place there properties on the market. what is a survey for then........?

    • 05 November 2008 01:00 AM
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    Currently working for a well known agent who cover parts of Cheshire and Manchester and they love HIPS and EPCS as they see these two things as an excellent income stream in a poor market, and advise us to over value to get that income in.

    • 05 November 2008 12:53 PM
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    For those who find HIPs to be nothing but an expensive waste of space and want to help in the fight to have them scrapped, join us at splintacampaign.co.uk

    • 05 November 2008 12:30 PM
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    What is needed is a HIP's review.

    • 05 November 2008 11:58 AM
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    I agree with Rich and the majority of the public and professionals. Total waste of money and resources. One buyer has asked to look at a HIP so far in over 12 months. Now the EPC farce - the odd few properties which have sold but didn't get an EPC as they expected exchange to happen before 1 Oct, now have to get one but the buyer doesn't look at it and the solicitors are exchanging without them, so long as there is one on it's way, which we of course ensure happens. But the vendors are being completely ripped off. Between £50 & £100 for a piece of paper NOBODY reads!!! A disgrace.

    • 05 November 2008 11:47 AM
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    Well its been a year and ive been asked once to look at a HIP. Wow they are so useful. Wouldn t have sold a house without one!!

    Oh wait a minute. Gordon Brown has just told me they do work so I have to do as iam told!!

    • 05 November 2008 11:12 AM
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