HIP question, I need advice please :)

chriserenity

jimc wrote: »

Chriserenity - I'm very interested in where you got the quote from? This was exactly the case raised by property-finding companies to claim there shouldn't be a HIP for property searches for clients. They were ruled against at the time. Has it changed?

Well, when I rang CLG and asked them what constitutes a private sale, thats what the person on the other end of the line told me. I also recall reading something similar in the CLG release they send out periodically - do you get that? I think you have to sign up for it but its free. Also if you trawl through the procedural guidance document on the Gvmt HIP website there might be something in there.

Regarding the property finding companies who 'match up' buyers with sellers:
Because they are making more than one person aware that the property is for sale this constitutes marketing and therefore a HIP is required. I am aware alot of these companies continue to not order HIPs. I met an executive of one of them at a Chamber of Commerce meeting recently who told me as much and still intends to not order HIPs despite the fact I know he's on shaky ground to say the least!

When the TSOs investigate them I imagine it'll be something akin to drawing the property repairs card in Monopoly :rotfl:. £200 per instance of marketing!

jimc_2

Chriserenity. Very interesting. One buyer approaches (non) seller and agrees to purchase = no HIP. One person or company approaches (non) seller on behalf of multiple buying clients = HIP. Good to know.

I suppose Property Finders are classified as Agents nowadays (carrying out introductions of possible buyers to sellers is an 'agent duty' according to the OFT) after the recent OFT press release and will therefore be subject to the higher Agents fine when it is introduced. They were talking about £500 fine per instance in the last advice I saw.

Tiger_greeneyes

Well I guess that's all bases pretty much covered. I doubt our lovely government would leave any loopholes when it comes to fleecing Joe Public for every penny. What was I thinking!

I've decided to keep marketing the property at the moment. I did mention to the EA that if the purchasers were prepared to offer full asking price then I'd be happy to suspend marketing for a couple of weeks to let them get their house on the market and maybe obtain an offer themselves. Fingers crossed it'll gain us the FAP

Friday is HIPs day, I'll officially be £300 odd poorer

Thanks for all your advice, I don't want to end up in trouble, it's just not worth it. I don't have to pay the HIP fee until I've sold as it'll come out of our sale proceeds, our conveyancing solicitor is providing the HIP

chriserenity

jimc wrote: »

Chriserenity. Very interesting. One buyer approaches (non) seller and agrees to purchase = no HIP. One person or company approaches (non) seller on behalf of multiple buying clients = HIP. Good to know.

I suppose Property Finders are classified as Agents nowadays (carrying out introductions of possible buyers to sellers is an 'agent duty' according to the OFT) after the recent OFT press release and will therefore be subject to the higher Agents fine when it is introduced. They were talking about £500 fine per instance in the last advice I saw.

Shame they don't know it though. Serious test of the powers of persuasion IMO. I tried convincing such an outfit once but they referred me to the law firm representing them who accused me of contorting the HIP regs to suit my own purposes!!

Heres the link to the TSO guidelines if you want to know how the gvmnt wants them to enforce the rules. I think a max fine of £500 is mentioned in it yes.

http://www.homeinformationpack.gov.uk/pdf/070918_FINAL%20Guidance%20for%20enforcement.pdf