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Government says there are no loopholes in HIPs - August 2007

Home Information Packs have proved controversial because they have been watered down and weakened over the last 12 months but like them or not, they have now come into force.

Anyone putting a four bedroom house on the market after 1st August has to provide a HIP for potential buyers. However, there have been several stories suggesting there are various loopholes to get round the system. 

To counter this, the Department for Communities and Local Government (CLG) has issued statements discrediting some of the more common suggestions. For example, one idea is that a seller could avoid the need for a HIP by saying his property was on the market before 1st August.

However, the CLG points out that it will then be up to the seller or his agent to provide evidence. Otherwise the seller could face a penalty notice of £200 which could be repeated if the enforcement authorities felt it was appropriate.

Another suggested loophole is to risk being fined and only order a HIP once caught. The CLG says the £200 penalty is not a one-off and can be repeated as many times as the offence is repeated. Estate agents who tried this could face a banning order.

Some people have considered ordering a pack and then pay the cancellation fee should they happen to sell quickly. However, to comply with the law, the seller has to commission a HIP and pay for it, or make a commitment to pay for it. Many providers say they can produce HIPs within seven days and it’s highly unlikely that anyone would be able to sell in such a short time.

Please contact us if you would like more information about Home Information Packs.

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