02/12/2008
HOME INFORMATION PACKS – one year on …
When the idea was first conceived its purpose was to streamline the home-buying process - but most solicitors consider that they are a waste of the Seller’s money and have actually had the opposite effect.
The fundamental flaw is the Local Search. Many unqualified and unregulated HIP providers fail to understand the meaning and importance of the documents that are to be included in the pack. Rather than obtaining the more expensive search carried out directly with the Local Authority, they get the cheaper Personal Search which is carried out by a search agent, resulting in incorrect answers and half answered questions.
Any prudent Solicitor for a buyer will reject a Personal Local Search and insist upon a direct Local Authority search causing a two week delay. Also, most HIP packs that contain searches that are out of date.
Many would-be Sellers are either delaying putting their property on the market to avoid spending additional money renewing the HIP or withdrawing their property after the HIP has expired.
Unfortunately HIPs have not been a success. Estate Agents report that very few Buyers understand them or even ask to see them. They have failed in streamlining the conveyancing process and have added an unnecessary hurdle to an already struggling housing market. The Law Society has proposed a number of reforms to improve their efficiency and it remains to be seen whether the Government will adopt them.
Sally Roberts is Head of the Conveyancing Team at Watkins & Gunn Solicitors and may be contacted on 01633 241162 |
|
