Home Information Packs

[Flyfisher]

This letter in the Eastern Daily Press today made me smile. It's from an Estate Agent referring to a booklet from the government entitled "Home Information Packs - Is Your Business Prepared?"

The agent writes "under the heading "Estate Agent's Duties" appears this little gem stating that agents are under a duty to provide a copy of the HIP to a potential buyer except where it is believed that: the person making the request could not afford the property; the person is not really interested in buying the property; or the potential buyer is not a person to whom the seller would wish to sell.

So it's official; there's no absolute need to compile a HIP as long as you decide you don't want to sell to anyone who asks for one !

 

[Nemesis]

I wonder how they decide who can afford?

Dirty fingernails do not a pauper make...

 

[Greg.hart]

I wonder how they decide who can afford?

Dirty fingernails do not a pauper make...

The ask you when you put your offer in I think these days. I had 2 or 3 questions re my finances when I put my offer in which apparently was enough to convince them that I could.

 

[Nemesis]

But surely you get the pack prior to making an offer?

And you could of course always lie about your wealth!

 

[AMc]

As the packs will be expensive to produce I would expect estate agents to require a mortgage affordability certificate, a mortgage agreement in principal or a bank statement showing the majority of the funds before they release them.
But with estate agents who knows?

 

[Nemesis]

But... in that case those who simply start to look before trying to sell their own homes (it happens...) or find themselves suddenly drawn to a house without having considered selling before will find this difficult?

It's all getting more of a mess rather than less I fear.

 

[NT]

such a shambles

 

[Penners]

They ask you when you put your offer in I think these days.

That would appear to negate the whole point of the HIP. Surely the prospective purchaser should be abe to read it before they make their offer?

 

[Nemesis]

And if only those who have their house sold or at least on the market (and with a HIPS in place) can have one from the vendor, I can see a crash in the housing market pronto!

 

[AMc]

In my recent experience of buying I wasn't specifically asked about our ability to buy, but we were using a buying agent which probably lent credibility and we had already accepted an offer on our house.
At the end of the day the ability to pay has always been part of the decision to accept or reject an offer - we took the first offer made as the couple had sold and were renting. The absence of a chain made them an attractive customer.

I would imagine that an agent will release the pack if you can demonstrate a) you can borrow the funds, b) you have the funds or c) you have a property to sell which would reasonably sell for a substantial chunk of the price. Estate agents have always made judgements about potential buyers. Some won't give you the details unless you register, but go in in a suit and tie and they're making appointments before you can sit down. I doubt they will be rigerous about the selection criteria, but have a get out to avoid having to distribute a HIP to every person who walks through the door.

I would also expect any potential purchaser to be able to view the pack at the agents - if my agent wouldn't do that I'd chose another to market my house.

If there were no protection at all then anyone could request the pack on any number of properties which would be a waste of paper and would cost the agent, therefore the vendor and ultimately the purchaser a lot of money.

Hopefully once the scheme is up and running it will make the offers stage a little firmer and allow people to move to exchange quicker.

From the little I've read this is one of the more minor issues with the current implementation of the HIP.

 

[bower1]

At the moment, when you buy at auction, you have to pay to get a copy of the information (similar to the HIP pack - nothing new?) usually about £10 in my experience. Or I've always been able to view it for free at the vendors solicitors.

I can't see why this system can't be the same for HIPs.

 

[Manny]

I was under the impression that because of the volume of paper this whole scheme was going to create that all the packs were going to be electronic. In which case it really shouldn't be that much trouble to ask to see it.

 

[Lime]

If there were no protection at all then anyone could request the pack on any number of properties which would be a waste of paper and would cost the agent, therefore the vendor and ultimately the purchaser a lot of money.

.............and would cost the agent.................

Oh! I'm all for that!

Just how can most estate agents justify their charges of £1000s for doing next to nothing?

 

[Penners]

I was under the impression that because of the volume of paper this whole scheme was going to create that all the packs were going to be electronic

I find that hard to believe. What about those folk who are uncomputerified?

 

[skier-hughes]

Print one off there and then and give it to them?