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Firsthips Review - March 2009 - For Agents


Agents' Review Welcome to the March 2009 issue of the Firsthips Review which includes news, advice and articles from the HIP industry front-line. We welcome comments and suggestions for additional content.

 

First day marketing only weeks away

After getting on for two years of continual postponements, the government has finally decided to bite the bullet and end the honeymoon period during which properties can be marketed as long as a HIP has been ordered but not supplied.

From the 6th April it will be illegal to market a property without a HIP, with the exception of searches that have to be applied for before the property can be marketed but still must be available within 28 days. The government has also decided to cancel the requirement for mandatory search insurance from that date based on the requirement that local authorities are now legally obliged to provide access to all data.

What does this mean for sellers and estate agents? Well since the time HIPs have been compulsory, the mere fact that a HIP has been ordered has been sufficient for sellers and estate agents to go about marketing a property. Critics have argued that this has left the industry in a state of uncertainty and has taken away the emphasis on HIPs being made available to the buyer before he/she makes an offer, one of the major reasons why HIPs were introduced in the first place. Now from the 6th April a seller or an estate agent faces a penalty of £200 if they attempt to market a property before the essential elements of a HIP are in place.

In addition to the Index and Sale Statement that are generally complied when the HIP is published, the compulsory elements of a HIP are:

Firsthips unique system enables estate agents to market in the quickest possible time

From 6th April the speed of supply of the HIP will be uppermost in the mind of all estate agents. Every day that goes by where the agent is unable to market because the HIP is unavailable will mean wasted opportunity with the alarming prospect of a potential lost commission!

Firsthips has invested substantially in developing the unique system and online interface that enables a HIP to be ordered and made available in the quickest possible time. Just check out what is available with Firsthips:

Why not call Firsthips now on 0845 257 1930 and give us a try? It's simple and easy to open an account and we won't ask you for any commitment but we are confident that once you have used us you won't go elsewhere!

Firsthips provides unique PIQ solution

From 6th April sellers must complete a Property Information Questionnaire before the HIP can be published and the property marketed. Firsthips has a unique solution to this requirement by providing three simple choices. Sellers who have internet access can log in and complete the questionnaire online so that it will be immediately available within the HIP and help to enable the quickest marketing! If a seller doesn't have access to the internet then there is nothing stopping him/her from accessing the site from the estate agents office.

The second alternative will be to download a special pdf form that can be completed by the seller on any pc and then transmitted back to Firsthips by email by clicking the button on the form.

As a final alternative or where the seller cannot get internet access then the agent or the seller can download a printed form from Firsthips. Once this has been completed by the seller all that the estate agent needs do is scan and email or fax it back to Firsthips and it will be automatically converted into a pdf file and published to the HIP straight away.

The government drafted PIQ requires it to be completed by either the seller or an authorised representative such as an executor or attorney. Concern has been raised by lawyers that the lack of a signature on the PIQ may give rise to questions over who has actually completed it! To protect the agent and avoid any potential problems in future, Firsthips has made some important changes to the form.

When the Firsthips PIQ is filled in personally by the seller a signature box has been added at the end of the form to confirm the answers are those of the seller. Where the Firsthips PIQ is completed electronically or online an additional tick box has been added at the end of the form which requires a response confirming that the replies have been completed electronically, and are those of the seller or an authorised representative.

Local Search fees likely to increase

Government legislation came into effect on 23 December 2008 allowing local authorities to charge for property search services, specifically 'access to property records' and ‘answering enquiries about a property’. These charges must be applied on a ‘cost recovery basis’ which will vary between the different local authorities and can only be applied to a Personal Search if the local authority also applies an identical charge to an Official Search.

Early indications suggest there will be wide variations in fees, with one local authority stating they will charge £5 for disbursements, whilst another will charge £55 in addition to the statutory local land charges fee. Whilst a few have published new fees, over half have said they are not clear about their future charges and are not confident that the position will be any clearer by April, despite the Government's expectation.

Inevitably the pricing structure for Personal Searches will need to change. Whilst the insurance in its present form will disappear, to comply with the PCCB, Search Code and HIPs Regulations, personal search companies are still required to provide ‘run-off’ cover which can be relied on by the seller, any prospective purchaser and the mortgage lender should the search company go out of business. As well as the run-off cover, Personal Searches that we order through our supplier STL, will include an Information Accuracy Guarantee for added reassurance.

From 6 April 2009, the standard price of a Personal Search from STL will include a fixed search fee plus a variable disbursement. The disbursement will include the statutory fee for a search of the Local Land Charges Register (currently £11, but under review), plus any costs for building regulations and any other information that is not available ‘free of charge’ or by other means, plus an Information Accuracy Guarantee (which insures the accuracy of the data), as well as the mandatory run-off cover. As a result of the new charging regulations, we firmly believe that a Personal Search will still be a more cost-effective option than an Official Search. We will, however, continue to offer Official Searches where these are more appropriate.

Firsthips ordering system already compares the price of a Personal and an Official Search and takes into account the average turnaround times for each and chooses the appropriate one automatically so, after the 6th April this will continue to work in the same way only the costs will change to reflect the latest disbursement fees and council fees.

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