Chiswick estate agents Oliver Finn welcome the potential benefits of Property Information Questionnaires.
Many homebuyers have ignored Government advice to review Home Information Packs (HIPs) before purchasing their home. Recent research by the National Audit Office reveals that 77% of buyers say the HIP had no effect on their decision to buy proving that the public see little or no value.
However as of 6 April, buyers for the first time will be able to obtain information relating to the property without having to incur the costs of a property lawyer to extract such information. Sellers putting their property on the market after this date are required to provide a " Property Information Questionnaire (PIQ) in their Home Information Pack. The inclusion of this document in HIPs should dramatically reduce costs for buyers.
What is a PIQ?
The PIQ is a legal document to be completed by a seller, providing simple, useful information about bills, utilities and services, access arrangements, Council Tax bands, changes or damage to the property, parking arrangements, and leasehold information.
For example, buyers will be able to see whether or not the property has ever suffered from flooding or storm damage, and check if structural alterations have the appropriate planning permission. Armed with this information, the buyer can determine whether or not to proceed with an offer. This inclusion of this document in HIPs should dramatically reduce costs and time for both buyers and sellers.
Having this information upfront is a positive move towards transparency says Christian Harper of Chiswick estate agents Oliver Finn: “My only concern is that buyers may not have sufficient knowledge and understanding to disseminate the information.
“The news that a property has experienced flooding may stop potential buyers from proceeding. However my parents’ house for example, flooded once in 1981, and has not suffered since. So I would caution the buyer to make sure they have all the relevant information before making a decision not to proceed.
“If buyers can remain realistic, I look forward to the sales process becoming smoother, with fewer buyers pulling out at the last minute.”
Paper trail
Simon Seaton, Legal Director of Fridays Property Lawyers: “It is very important for the buyer to have a paper trail evidencing receipt of the PIQ from the estate agent before the price being agreed. Once the buyer has this, they can use this as ammunition should any inconsistencies manifest later.
“Prior to the 6th April a buyer had little chance of recovering legal costs from verbal statements given by the estate agent or the seller directly. From the 6th April, should the buyer pull out of the transaction due to inaccurate information in the PIQ, the buyer may have all the evidence needed to pursue the seller for costs."
So if the lease turns out to have 50 years remaining instead of the 90 years stated they may be able to recover fees and out of pocket expenses, which could run to thousands of pounds.
Further information:
PIQ template. PIQ sample can be found here.
