This is the forum for news and facts in the fast changing world of E-Conveyancing, the Home Information Pack and Energy Regulations where new rules and working practices abound
ABS's on the horizon
The Legal Services Board has published a consultation paper “Wider access, better value, strong protection”. This heralds an intention to introduce Alternative Business Structures as soon as possible and with a target date of 2011.
This builds on the changes in regulation to permit LDP’s since March 2009 and for entity regulation of recognised bodies by the Solicitors Regulation Authority.
All professionals will need to know how these entities can be formed, how they will be regulated and how they could affect traditional methods of practice. There may be changes which affect every existing business.
The opportunity for new entrants to challenge the status quo will affect the current models of practice and it is to be expected that the High Street property professionals will be at the front of those who may be attracted or otherwise by the government policy.
In order to survive and consider plans, it is vital for all property practitioner inside and outside of the legal profession to review the landscape and what might now change.
These developments are important whether you are planning a new service model or intend to strengthen your market position. So if you are interested to know more or to organise a seminar or lectures on this topic, please make contact
The entities will engage in legal services and can admit as members non lawyers. otherwise they will be similar to LDP's. Rules for approving 'fitness to own and regarding 'change of control' will need to be developed.
LDP's floated
From 31 March it has been possible for solicitors to join in partnership with other regulated professional lawyers and also to admit into their firm as managers with them other non lawyers.
The non lawyers must not exceed 25% of the membership of the Legal Disciplinary Practice and they must work in the business of providing legal services and not simply be part owners
Get HIP from April 6
The First Day Marketing concession to allow marketing to start as soon as the Home Information Pack was ordered came to an end on 5 April 2009.
From that date the HIP must be in existence (but see below for marketing with an incomplete HIP) and copies available for buyers as soon as the property is put on the market - the first point of marketing (FPM)
The HIP MUST include the following documents and in this order
Freehold – both registered and unregistered
Index
Property Information Questionnaire (PIQ) Part 1
Energy Performance Certificate (EPC)
Sale statement
Title documents - Official Copy Entries/Index map search and epitome of title
Local authority search and enquiry report
Drainage and water search report
Any leases that affect all or part of the property
Leasehold
Index
PIQ Parts 1 and 2
EPC
Sale statement
Title documents - Official Copy Entries
Local authority search and enquiry report
Drainage and water search report
Copy lease
New Homes
Index
PIQ Part 1 for new homes
Energy Performance Certificate or Predicted Energy Assessment if the property is not yet finished
Sustainability Certificate
Sale statement
Title - freehold or leasehold Official Copy Entries
Local authority search and enquiry report
Drainage and water search report
If the new home is to be leasehold, in addition –
Copy lease or proposed lease
PIQ -Part 2 and estimate of the financial contribution for the property towards service charge, ground rent and insurance
Authorised content
This is optional and includes
A summary statement
A Home Condition Report
Additional Searches
Additional relevant information
Additional relevant leasehold information
Marketing with an incomplete HIP
The requirement is for the HIP to be in existence and available for buyers at FPM but, it is possible to start marketing where certain elements of the HIP have been applied for but are not yet available
The ‘incomplete‘ HIP must in all cases include –
Index
Property Information Questionnaire (PIQ)
Sale statement
Title documents
Proof of request for missing items
The Index and the proof of request must contain details of the elements that are missing and what is being done to obtain them along with a statement that they are expected to be available within 28 days.
If the EPC is one of the missing elements 14 days must elapse from the date of the original request for the EPC before the property is put on the market (FPM)
As each ‘missing ‘element is received it must be added to the HIP and the index updated to show its inclusion. You cannot wait for all missing elements to be received before completing the HIP.
Requests for ‘missing’ elements must be correctly addressed and include, or undertake to, make payment of relevant fees
21 January 2009
A little publicised further amendement to the HIP regulations was laid to remedy an anomaly in the rules for marketing with an incomplete pack after 6 April 2009. The regulations that brought in the need for a PIQ (see below) made no amendment to these rules. SI 2009 No 34 adds the PIQ to those elements that must always be included in the pack when a property is first marketed.
January 2009
The regulations published on 8 December 2008 have as yet given rise to little by way of comment or commentary. New initiatives have been slow to appear no doubt because of the slowdown in the mortgage market. Nothing has yet been said about the extension to 6 April 2009 for insurance backed local searches and enquiries, although many anticipate that a further extension will be needed. This would require yet another set of amending regulations; it does not seem likely that all local authorities will be in a position, or will want, to allow unfettered access to all information for all would be searchers.
There are two versions: one for all properties and the other for new properties.
This does not appear to be a prescribed form (meaning one that must be used in the government approved format) but it does have prescribed contents that are found in the latest set of regulations (regulations 10 and 11). These regulations import the prescribed contents into the principal regulations (The Home Information Pack (No 2) Regulations 2007) as Schedules 11 and 12 for all properties and new homes respectively. The PIQ becomes a compulsory element in the Pack from 6 April 2009.
The Law Society is preparing a form of PIQ to be included in the new suite of TransAction forms. The new suite of forms will be available from the usual sources and will also be included in an updating edition, being published by the Law Society in February/March 2009, of ‘Conveyancing Forms and Procedures’.
The updating newsletter has disappeared although the business link site does have a ‘what’s new’ button which, hopefully, will flag and explain any further changes on the horizon.
In December the OFT announced markets study into home buying and selling, looking at traditional estate agency models and other ways of buying and selling homes. http://www.oft.gov.uk/news/press/2008/141-08.
This month a report on regulation and redress has been published. It was prepared for BERR and CLG by Professor Colin Jones at the School of the Built Environment, Heriot-Watt University - http://www.berr.gov.uk/files/file49743.pdf
The objectives included consideration of the regulatory framework for estate agents lettings agents, HIP providers and private search companies taking into account the implementation of the Consumers, Estate Agents and Redress Act 2007 and identified gaps in the framework and examined the level of consumer detriment.
The main finding of the report is that there are inconsistencies and gaps in the structure and basis of regulation, and the redress schemes. It concludes that there is scope for reform, extension and rationalisation.
Accordingly BERR has begun (many would say at long last and after over ten years delay) a project to look at the future of estate agent legislation. The recently announced OFT study as well as the Carsberg report will also be taken into account. The project is scheduled to report in January 2011.
