Duties Created by the Introduction of HIPS

The person[s] responsible for marketing the property, usually the estate agent, must comply with the HIP duties. The main duty is to have a HIP in their possession [or under their control] when the property is first marketed. Until the end of the year (2007), people will be allowed to market their properties as soon as they have commissioned a pack - rather than having to wait until they have received a pack.

In addition to ensuring that the right documents are included in the HIP, the estate agent is also under a duty to provide a copy of the HIP [or part of it] to a potential buyer who asks for it. There are certain circumstances under which the estate agent does not have to provide a copy of the HIP and the agent is permitted to make a reasonable charge to cover copying and postage. [It is not permissible to make a charge for creating an electronic copy of a HIP].

It is not intended that the regulation should impose on the seller or the seller’s agent the duty to ensure accuracy of the information contained in the various documents that have been provided by others when assembling the HIP. The seller, or the agent, will not be subject to the penalty provisions in the regulations so long as they had reasonable cause to believe that the document supplied complied with the rules.