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HIPs should be clarified says Ombudsman

17th November 2008 12:45
Electrical
HIPs should be clarified says Ombudsman

Home sellers may be having a tough time shifting their property in the current stagnant property market, however they must not take their eye off the ball when it comes to Home Improvement Packs (HIPs), says the Ombudsman for Estate Agents.

The Ombudsmen urged estate agents to ensure that home-owners looking to sell are fully aware that the HIP is compulsory and that if the house does not sell they are still obliged to pay for the HIP, which is carried out by those who have undertaken domestic energy assessor training.

Ombudsman Christopher Hamer commented: "In particular it appears that sellers see the charge for the HIP as simply a fee for selling their property and of course if it doesn't sell, they do not expect to pay."

He added that agents should be careful to ensure clients fully understand where they stand under an HIP agreement and clarify that sellers are legally obliged to produce an HIP under the Housing Act 2004.

They should also make clear that once the HIP has been paid for by the seller, it is then owned by them.

HIPs contain information about a property that is being marketed for sale. Details about the energy performance and evidence of title are among the documents that an HIP must contain.ADNFCR-1529-ID-18879208-ADNFCR

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