If you have done nothing to meet the HIPS threat, please read this carefully.
If you are fully prepared then congratulations, you may still find this of some interest.
2007 is nearly upon us and with it, brings some drastic changes within the Conveyancing market. You may have some concerns regarding the implementation of HIPS which we at Perfect Software would like to ease. As a company we have been supporting the smaller firms for around eighteen years and will continue to do so for many years to come.
Home Information Packs become compulsory from Friday, 1st of June 2007. Properties put on the market before this date, have until the 31st of October to provide a HIP. In practice, the responsibility for providing the HIP lies not with the seller or conveyancer but with the estate agent, who must ensure that a HIP is provided before he is able to advertise the property - giving him control of the transaction.
As at this point in time, the HIP will comprise of:
Ø Evidence of Title
Ø Local Searches (LA and LLC)
Ø Energy Performance Certificate
Ø Water or Sewerage Search
But not:
Ø Home Condition Report (the ‘Early Survey’)
Ø Environmental Search
Ø Flood risk, Mining, Geological surveys etc.
Ø Any warrantees or guarantees that do (or do not) transfer with the property
There are many views on how this will work out. Some feel there will be little change, but most believe the new obligations for estate agents will reduce the amount of work for smaller practices. For example, Michael Garson (Law Society council member for residential conveyancing, said:
“As much as 30% of the market could disappear from the high street, leaving gaps and spelling ruin for hundreds of small firms”
(Gazette June 2006)
We believe our clients can deal with this only by forming better relationships with estate agents and by providing HIPs themselves.
These relationships may involve some form of referral fee, or may be closer commercial relationships (durable agreements, or possibly even some form of take-over or merger). It goes without saying that firms that survive will be offering HIPs to their estate agents.
And there are more Estate Agent Opportunities
The surprise withdrawal of “RightMove” from the HIP market in August/September left the vast majority of estate agents without provision for HIPs, providing a big opportunity for smaller firms. Recent broadsheet advertising by estate agents (Times etc early December) shows that many estate agents have not recovered from this and they are not at all happy with the current state of affairs. They may well be looking for suitable partners to provide HIPs.
The following firms have come to our attention as providing practitioner (and lender) friendly HIP services:
Ø Complete
Ø HIPAG
Ø Richards Grey
All these offer a variety of schemes, with options as to who pays for the HIP, when they pay, and whether commission/referral fees are to be included or not.
Of course, many conveyancers have already taken action of this kind.
If you have done nothing yet, then please do NOT ignore this:
Ø Contact your local agents
Ø Contact at least one of the HIP providers
Ø Remember – TIME IS NOT ON YOUR SIDE
Don’t forget that Perfect Software is here to help you. We can help you with banking, year end and Case Management. If you are using our product and on our maintenance contract. This letter is an example of how we can help you.
May I end by wishing you a very Merry Christmas and a prosperous New Year.
