Is a new HIP required when changing agents?

creesey

I placed my 2 bed flat on the market ages ago with an agent who I believe has underperformed. I have given notice to them to take off their books and have give instructions to another agent to put on theirs. The new agent wants me to pay for a HIP pack. The newly instructed agent claims that, and I quote fromtheir email '

A hip is a legal requirement and we can be fined by Trading standards if we do not produce one so we cannot begin marketing it until one has been instructed.
Kind regards'
I assume this a ruse and that there is no requirement for one, after all, it's not just been put on the market, it was on the market well before HIPS came into effect and the current agent has no such requirement.
Your advise is welcome ;-))

Doozergirl

If the house has been marketed continually since before a HIP was needed then no, you still don't need one.

From: http://www.homeinformationpacks.gov.uk/consumer/75_Contact_us.html

"Changing Estate Agents
A property that has been on the market since before its corresponding commencement date, and is therefore exempt from the HIP duties, will continue to be exempt if the seller changes Estate Agents, provided that there is no break in the marketing"

Whether it would be prudent to buy one is another question. Perhaps you're not quite at the point where people will see your flat as a bit of a target for a low offer, but you are not far off.

country_sport

Sounds like the agent doesn't know the rules or is trying it on, nothing new there! You dont need a HIP but you may want to get one anyway. Dont automatically buy the agents HIP if you do decide to get one. As your solicitor or go online.

BenL

There was a thread a while ag along the lines of "Would you buy a house/flat without a HIP?"

I would invest in a HIP if I were you as by not having one it shows that your flat has been stuck on the market not selling for a long time.

The estate agent in your case was poor but this may still put off buyers.

HIPS cost, £400 ish?? Not a lot in the scheme of buying/selling houses.

Jorgan_2

You don't say when the property went on the market, if it has a HIP at present and if it has a HIP, who owns it, you or the EA?

You do not need a HIP for your property if it was on the market before December 14th 2007, even if you are changing agents. If you went to market after that date, a HIP should have been produced. If the EA paid for the HIP, they will probably own it, the new agent may not be able to use it, so you will be required to have a new HIP carried out.

chriserenity

No you don't need a HIP legally, I'd say £400 was a bit on the pricey side to be honest. A HIP of between £250 and £300 all inclusive is good moneysaving i'd say. As country sport says try your local Energy Assessor (DEA) or Solicitor and ask if they can prepare your HIP for you.

The idea with getting a HIP voluntarily is that to a buyer no HIP may mean the property is not selling for a reason ergo "I'll try and get a reduction in the vendor's asking price". Considering such a reduction may be thousands and a HIP costs the prices I suggested above its your decision whether to get one or not - do you think the lack of a HIP makes your property stand out to buyers alongside HIP-available properties? If so I'd get one. If not, carry on!

Food for thought ...

gcpc1

Something to maybe bear in mind is whether a typical viewer of your property will ask whether a HIP is available? I would've thought that the majority of viewers wouldn't know/care and that it's more of a thing that the solicitor doing the legal work would ask for.

chriserenity

gcpc1 wrote: »

Something to maybe bear in mind is whether a typical viewer of your property will ask whether a HIP is available? I would've thought that the majority of viewers wouldn't know/care and that it's more of a thing that the solicitor doing the legal work would ask for.

Yes, it is something relevant to the solicitor apart from the energy certificate which is for the buyer but its fairly obvious if a property has a HIP - savvy buyers only need to ask and that is evidence enough of how long the property has been on the market.

country_sport

In my experience so far, buyers are starting to ask to see the HIP. Now the dust is settling buyers are getting more wise to saving a bit on there buying costs, i.e. solicitors bill. They are also rejecting solicitors who still charge for the searches, even though they are in the HIP, as long as there not out of date. Some are even asking to see the EPC now.

harryhound

If I as Mr Seller own my own HIP, can my Estate Agent market the property on the basis that the Seller will give the (potential) Buyer a view/copy of the HIP as and when the buyer views the property?

I ask this, because in the present climate of falling prices a HIP can only be a source of "reasons" to reduce the offer price or not bother to view at all. Get the buyer in through the front door and there is still a chance of making a sale!

Richard_Webster

Effectively any bona fide potential buyer is entitled to look at the HIP. It is the estate agents' duty to provide it so you have to make it available to them. With HIPs that I prepare I put them onto a website and give the agents the link so they can pass it onto potential buyers. If someone wants a printed copy the agents are entitled to make a reasonable charge for this.

The agents can refuse to give a HIP to people that they reasonably consider would not be able to buy the property. However the reality is that it is not generally time efficient for agents to check the proceedability of every potential viewer. They generally do that if someone makes an offer.