Searching questions
Date: 20 November 2009
Authors: Andrew Stenning
Issue: Vol 159, Issue 7394
Categories: Features, Property
There have been some calls in the past to scrap HIPs which have been backed by statements such as “it would slow the market down” and “it increases costs involved in buying and selling”.
However, a recent poll has been commissioned with over 175 housing industry professionals, which included mortgage lenders, estate agents and property investors who said that they were in favour of HIPs.
Grant Shapps, shadow housing minister for the conservatives, has in the past been clear about the conservatives’ view on scrapping HIPs.
However, it is also worth mentioning that their view is changing as they recently indicated approval of an exchange ready HIP, we can only conclude that they are now beginning to understand the benefits HIPs bring to the conveyancing process.
It is also worth remembering that the majority of information contained within a HIP was always required during the buying and selling process. The Property Information Questionnaire is the most recent addition to the HIP and adds even further quality to the information contained within the pack. By including all this information at the outset of a transaction, any possible issues, such as a property not being registered correctly, can be identified at an earlier stage thereby limiting delays in the transaction once the sale is agreed.
Value
At Searches UK, we believe that HIPs are a valuable product within the conveyancing procedure, although we do feel this could be improved upon to add even more value to what appears to be a popular and acceptable product.
The contents contained within the HIP have been used to speed up conveyancing transactions and if this pack is added to, it can only enhance the process further. We appreciate that there has been a rise in the number of personal search companies, which many attribute to the HIP industry, though there are a number gaining a poor reputation.
Is this justified and is it fair that all personal search companies are cast with the same brush?
No, we do not feel it is. The majority of personal search companies work tirelessly to provide an excellent service and superb quality searches and should not be judged on the small number who are cutting corners and flouting the rules.
Searching for an answer
We are pleased to say that the Property Code Compliance Board (PCCB) are currently investing claims that some personal search companies were not providing the full Con29r information within their searches. Further, we welcome the fact that the PCCB are spending time investigating and spot checking firms as we feel that for HIPs to work effectively, all of the components must be completed.
Personal search companies gain Con29r information in various ways. Some use a system called Datastore and some rely on various other sources. The PCCB rules state that searches should “accurately report the most up-to-date available information of all available sources, including the property from the sources consulted”.
The PCCB also go on to mention in their recent Guidance Notes (GN9a) “that concerns over the accuracy and completeness of searches include: assuming that search results obtained previously for a property nearby will also apply to the property in question, without the further checking of specific records, not answering specific questions and using ambiguous terms such as N/A.”
At Searches UK we gain fully up to date data on the day of completing the search at the relevant council. By doing this, we are ensuring that the search is as accurate as possible and again this provides a better quality product for the conveyancer or solicitor to reply upon.
Searches UK are also a member of the Association of Independent Personal Search Agents (IPSA). Christian Lister, Chairman of IPSA, the leading trade organisation for the sector commented: “The introduction of the IPSA Code ensures that our members have a clear understanding of the principles that they are supporting and that consumer protection is paramount.”
We have recently been in contact with a number of solicitors and conveyancing practices, most of whom are pleased with the quality of personal searches and can see the benefit they offer in terms of price and turnaround time which ultimately benefits their clients.
It is time to stamp out all personal search companies who are trying to cut corners as this impacts on the HIP and conveyancing industry as a whole.
Andrew Stenning is managing director of Searches UK .
E-mail: andrew@searchesuk.co.uk.
Website: www.searchesuk.co.uk
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