Estate agents taking risks with Home Information Packs

Some Estate Agents are taking unnecessary risks by obtaining HIPs from providers that do not subscribe to the HIP code.

They are looking for the cheapest options (in some cases to make the biggest mark up) because they do not care about protecting the consumer. In so doing they are taking a risk themselves in their role as the ‘responsible person' under the law, often without realising it.

The HIP code was established to protect consumers as well as estate agents, conveyancers and mortgage lenders. It requires that HIP providers meet high standards and carry Professional Indemnity insurance of a minimum of £2 million per HIP. Further, it requires that there is an independent redress mechanism available to consumers' that is free to use.

Mike Ockenden, Director General of the Association of Home Information Pack Providers said ‘While I understand that many Estate Agents do not like HIPs, they are here to stay and it is important that agents understand their legal responsibilities in respect of packs. To protect themselves and of course the customers that they are serving they should only use packs that carry the HIP code logo.'

It is a simple matter to establish if a pack provider is a HIP code subscriber - simply visit propertycodes.org.uk and look up the register of firms.