24 February 10
An article in the Law Society Gazette On-Line comments on a report that Home Information Packs (HIPs) have reduced the number of failed transactions.
Conveyancer and HIP provider myhomemove said the packs had caused the number of failed property transactions it was involved in to dip to 9% since the full introduction of HIPs last April. The figure was significantly lower than the 23% average failure rate published by the government in 2007, before the introduction of HIPs.
The data for more than 10,000 sales where myhomemove acted for buyers also showed HIPs had speeded up transactions by about six days, with average time taken to complete now 50 calendar days.
However, Richard Barnett, chairman of the Law Society’s conveyancing and land law committee, commenting on myhomemove’s figures, said HIPs were unlikely to have played a significant part in reducing the failure rate. Instead, he put the drop down to the unusual market conditions.
Paul Cowdery of Clarke & Son comments:
HIPS with up-to-date searches (i.e. usually no later than 3 months old when we receive instructions) can help to speed up the legal investigation of papers, but I still find in practice that they are of little interest to purchasers who only rarely say that they have viewed the HIP before putting in an offer. If the market is active then HIPs can help but where it is sluggish there can be duplication of cost where buyers have to renew out of date searches. The jury is still out!
For further information on legal services when buying or selling your home or for the preparation of or consideration of a HIP then contact Paul Cowdery or Jenny Axe on Tel: 01256 320 555.
