ESTATE AGENCY EXTRA
News, Views, Information and Advice from David Perkins CPEA FNAEA
— the Estate Agency Regulatory, Compliance & Training Consultant

Mostly Information relating to Home Information Packs
with Estate Agency Training and Compliance Advice

Here is a host of material which will be of interest and assistance to residential estate agents. Currently, the most contentious topic is the imminent introduction of Home Information Packs from June 2007 so here is Part 5 of the Housing Act 2004 plus the current HIP Regulations and background commentary and explanations.

The latest additions include:

Complusory Ombudsman membership is coming in the new CEAR Bill

Training Domestic Energy Assessors

News from the SPLINTA Campaign Group

A recent edition of 'Estate Agency Update'
looking at EPCs and various HIP production ideas

     In due course we also plan to cover other estate-agency related topics including the new Consumer, Estate Agents and Redress Bill, the Money Laundering Regulations, the Property Misdescriptions Act, the Ombudsman and the Codes of Practice, etc. Also included are copies of my own more recent 'Estate Agency Updates' which you may find mildly amusing. Or not!

     Serious comment: if you cannot find anything you particularly need, please let me know as it is almost certainly here somewhere. My system held around 60,000 document files at the last count and is, I gather, the largest estate agency-related data base in the country. Certainly the start of the collection goes back over 20 years.

     Many items are in Acrobat.pdf format (which can be a little slow to load initially); others are in MS Word and HTML. Hopefully you can copy, or print them out as necessary. Some are Crown Copyright but these may also be downloaded and used provided the source document is named and the copyright acknowledged.

     An important point – please check the date of everything as some of the documents may well have been superceded but are still included here for reference purposes or, to be honest, because I do not have time to keep editing and updating! For the same reason I cannot guarantee that every link will necessarily still work other than those directly from this page which I try to check. Numbering will not necessarily be continuous with material being regularly added or removed.

     Finally, if you have any queries, specific questions, or want to arrange staff training, either ring 0870 350 1865 or use this Email Link.

Home Information Packs

1.    Part 5 of the Housing Act 2004 – Chapter 34 This is the section of the Act which deals with Home Information Packs. It is the legislation on which the whole new regime is based giving the Minister the necessary authority to introduce, and vary, the Secondary Regulations by Order in Council.     Click Here

2.    The Home Information Pack Regulations 2006 SI 2006 No. 1503 Note, as these Regulations include several Sections dealing with mandatory Home Condition Reports and the Certification Scheme for Home Inspectors they will need to be revised. The final version is due by February 2007. These have 55 pages in *.pdf format     Click Here

3.    Explanatory Memorandum to the Home Information Pack Regulations 2006   This Memorandum was published to assist MPs understand the legislation while it was under consideration however it includes useful background information in the Appendices.    Click Here

4.    The Home Information Pack Regulations 2006: Procedural Guidance   This is Guidance for Estate Agents published by the Department for Communities and Local Government as such it is really essential reading for managers and senior staff.    Click Here

5.    The Home Information Pack Regulations 2006 – The Various Prescribed Forms   These include the Sale Statement; Home Information Pack Index; Home Use Form; Home Contents Form; and Form for Homes not yet physically complete, in the prescribed format – again must have material.    Click Here

6.    Home Information Pack Certification Schemes Standards – Part 1: Business Standards   This is the detail of the Certification Process, currently 68 pages, but it will have to be further amended now that the HCRs are no longer mandatory.    Click Here

7.    Home Information Pack Certification Schemes Standards – Part 2: Technical Standards   This is 264 pages of technical detail relating to the Certification Process. Again it will have to be amended now that the HCRs are no longer mandatory.    Click Here

8.    A Report on the Number of Home Inspectors Required from Introduction of HIPs   Although only published in May 2006, this is already somewhat dated as HCRs are now 'voluntary', however it remains useful background information for anyone considering HI training.   Click Here

9.    Replies to Official Searches and Standard Local Authority Enquiries   This is an example of replies covering several subject areas – all are manadatory documents for inclusion in a HIP.    Click Here

10.    An Impact Assessment of Home Information Packs   This particular, distinctly worrying, assessment comes from the respected Oxford Economic Forecasting and is thought to be the report which persuaded the Government to withdraw mandatory HCRs.    Click Here

11.    The Revised HIP Time-Line published by the Department in September 2006    This second edition allows for the reduced significance of the HCRs and the number of HIs and includes details of the proposed 'Dry Run' to validate the systems.    Click Here

12.    NEW!   Sign-up to SPLINTA!    The acronym says it all – Seller's Pack Law Is Not The Answer – this powerful campaigning group, co-founded and fronted by Nick Salmon, was largely responsible for persuading the Department to change its mind over mandatory HCRs, and is now actively working on several other critical issues including first-day marketing. To lend your support Click Here.

13.    Various Reactions to HCR Decision    Some, such as SPLINTA, welcomed the move, while others expressed varying degrees of disappointment or outright concern. Click Here.

14.    The Association of Home Information Pack Providers' plans for the 'Dry Run'    This is a Press Notice from the AHIPP outlining its plans and the locations for this Autumn's exercise.     Click Here

15.    The Code of Practice for Home Information Pack Providers    The newly established Property Codes Compliance Board (PCCB) has launched this Code for HIP Providers which was prepared in association with the AHIPP.     Click Here

16.    The Code of Practice for Search Organisations    While talking about the newly established Property Codes Compliance Board (PCCB) here is the second Code it has prepared, this time one intended for search organisations.     Click Here

17.    A Guide to making Personal Searches    This is a useful booklet, prepared by the DCLG, as guidance for anyone intending to prepare Home Information Packs in-house. It explains the procedures, forms to use, and lists the various search bodies with contact details. (23pp)     Click Here

18.    The Council of Mortgage Lenders calls for a further rethink.    Initially, the Government was keen to get the Mortgage Lenders to accept HCRs for mortgage appraisal purposes. Now that HCRs are voluntary and cease to be an issue, the CML has turned its attention to the 'Dry Run' where it is clearly less than impressed.    Click Here

19.    The SAVA Saga    Here is a collection of items relating to the decision by the Department to allow SAVA to become the first body able to certify Home Inspectors.   Click Here

Consumers, Estate Agents and Redress Bill

25. NEW! Introducing Mandatory Ombudsman Membership The Government has long said that it wants every estate agent to belong to an Omdudsman-type Redress Scheme. This new Bill will achieve this and require additional record-keeping, etc. This link takes you to a comprehensive collection of CEARB material including text of the relevant Sections of the Bill with commentary and explanation. Click Here

Home Condition Reports

26.    The Government's Standard Assessment Procedure for Energy Rating of Dwellings   As it is on the system, here is the full technical specification for designing EPC software to BRE criteria.     Click Here

27.    Piloting the Home Condition Report – a comprehensive outline from February 2004   Although this 58 page brochure is now somewhat dated it nevertheless contains a lot of useful background information about the idea of HCRs, etc.     Click Here

28.    The Government Statement about dropping Compulsory Home Condition Reports   This was the first indication that HCRs were no longer going to be a 'Required' Document in a HIP but it was wrapped up as promotion of the Energy Performance Certificates and the Dy Run. This significant change of policy came without any prior warning and the commentary needs careful reading to get the full message.     Click Here

29.    Another Government Statement about going 'Green' – further emphasising the importance of EPCs   This Press Notice talks about linking EPCs to 'Green' mortgages and acting as an encouragement for people to upgrade their insulation standards. It also announces that Landmark Solutions has won the tender to operate the HCR and EPC Data Base from the end of 2006.     Click Here

30.    An Example of a Home Condition Report    This version was prepared by SAVA a while back and does not include an Energy Performance Certificate (EPC) which is the only aspect still mandatory in a HIP. But see below for an EPC.     Click Here

31.    An Example of an Energy Performance Certificate   This version of an EPC is the one circulated by the Department although it is not yet specified in this exact format in the Regulations. That particular aspect is due to be clarified after the 'Dry Run' in the Autumn. It is the only aspect of a HCR whichg is still mandatory in a HIP.     Click Here

32.    Another Example of an Energy Performance Certificate   This contains similar data to the DCLG version but was prepared by The Partnership – a firm of HIP Providers which runs a very informative Website where many of the sample documents are clearly set out and regularly updated.  ; Click Here

33.    The Professional Practice Note dealing with Training to be a Home Inspector    This Guidance Note was initially prepared while HCRs were still 'Required' documents for inclusion in HIPs. Now they have been downgraded in importance to 'Authorised' documents which may be included if the client requests one. That said, as far as I am aware the training arrangements remain as outlined in this paper.     Click Here

Conveyancing News

34.    Introducing e-Conveyancing    This is based on a paper by Julie Barry – the Communication Manager with the E-Conveyancing Task Force at HM Land Registry – and although dating from 2003 it remains the shape of future conveyancing practice which will be implemented by the end of this decade.     Click Here

35.    Introducing the Concept of Chain Matrix from Land Registry    Following on from that item above on e-Conveyancing this is the latest position as far as the Land Registry is concerned. The scheme calls for far greater disclosure by all the links in a chain of transactions.    Click Here

36.    The Law Society Guidance over the Preparation of Home Information Packs    Although this draft paper is being prepared for solicitors, it is worth studying by any estate agency contemplating a close association, co-operating with a local solicitor.    Click Here

37.    An Article on N-LIS, the National Land Information Service    This is another earlier article outlining plans for a national electronic network which will significantly speed up the compilation of HIPs, searches, etc. and is part of the plans for e-Conveyancing. .    Click Here

Staff Training

38.    An Earlier Version of the Draft National Occupational Standards for Handling HIPs   This draft was prepared at the end of 2005 but gives an indication of the attention to detail which will be expected from estate agents.   Click Here

39.    NEW!    Just released, the Draft National Occupational Standards for Preparing EPCs   These draft NOS standards for the qualification of Energy Inspectors are being prepared by AssetSkills, the organisation responsible for setting all NOS criteria, and appear to set strict requirements for this new qualification. They are due to be finalised for publication in February 2007.    Click Here

40.    The Critical Importance of Staff Training    Under the Property Misdescriptions Act, Trading Standards Officers consider staff training every two years to be the minimum necessary to sustain a 'due diligence' defence submission, but in the case of the Money Laundering Regulations staff training is a mandatory requirement – with a potential prison sentence for serious negligence!    Click Here

41.    A Note regarding Money Laundering Regulations Training   An outline of what is involved in setting up a 'Know your Client' procedure and looking out for any suspicious activities.   Click Here

42.    An Outline of the Current Range of Training Modules   This new, flexible, approach gives you a choice of topics and their depth of treatment. Please note that to cover the PMA, MLR and now HIPs really calls for a full day and, ideally, should involve all the staff.     Click Here

And finally ...

43.    The Regulation of Estate Agency    A four-page paper looking comprehensively at the various legislative and regulatory aspects of the profession with an explanation of who does what – plus a few brief training suggestions.   Click Here

44.    NEW!    A Confidential Estate Agency Hot-Line Support Service   Think how useful it would be to definitive, reliable advice and guidance over critical questions that arise in every office. Not just the PMA, all aspects of agency law and compliance are covered, commission disputes, drafting difficult correspondence, etc. Please read this testamonial from a long-standing subscriber; or, for a full two-page explanation schedule:   Click Here

Lastly, some light reading

45.    'Estate Agency Update' – March 2006   This edition dealt with the background to HIPs and although a little dated is nevertheless an interesting commentary.   Click Here

46.    'Estate Agency Update' – October 2006   Looking at the background to the surprising change of policy over HCRs with some ideas on why this happened and the likely ramifications.   Click Here

47.    The November Article from 'Estate Agency News'   An examination of where matters currently stand in relation to the new HIPs regime followed by a discussion of the first option – allowing the client to be the 'responsible person' preparing their own HIP. Not, needless to say, my recommended suggestion!   Click Here

48.    The December 2006 Article for 'Estate Agency News'   This continued the discussion of the various options for when HIPs finally become mandatory.   Click Here

49.    NEW!   The February 2007 Article for 'Estate Agency News'   This looks at the latest HIPs Consultation Paper and asks whether the work could possibly be finished by June – this coming June!   Click Here

50.    The December edition of my 'Estate Agency Update'   starts with news of EPCs before turning to HIPs – looking at whether to farm everything out or to be the 'responsible person' and take responsibility for your own Packs which need not be that difficult!   Click Here

Have you found this ESTATE AGENCY EXTRA website useful?

If so, please pass the contact address on to your own branches and any other estate agents who may be interested.
If you can see possible improvements or additional facilities please let David Perkins know. Thank you.

David Perkins – PO Box 333 – Carterton OX18 3WZ
Tel: 0870 350 1865
Fax: 0871 250 1865
E-mail: eae@davidperkins.co.uk

ESTATE AGENCY EXTRA was originally launched ten years ago and published in a printed magazine format with the by-line 'A Professional Journal dedicated to Compliance Advice and the Promotion of Best Practice'. This type of electronic publishing is more flexible although, hopefully, it can still offer the same high quality compliance advice and guidance and reflect the principles of best practice.

For the record, ESTATE AGENCY UPDATE is an occasional newsletter dealing primarily with regulatory and compliance issues applying to residential estate agency, which is compiled and presented with the compliments of David Perkins – the Estate Agency Compliance and Training Consultant.

While all my personal material is strictly speaking copyright, it may be reproduced on two conditions: firstly, that comments are not used out of context; and secondly, where appropriate, the source is quoted – “David Perkins writing in ‘ESTATE AGENCY EXTRA’”.

Please note that while every effort will be made to present accurate and up-to-date reports based on reliable sources, no guarantees or warranties can be given. In particular, the comments and opinions are those of the publisher and should not be attributed to any other person or organisation unless specifically stated. Anyone wishing to rely on any of the advice or suggestions in ESTATE AGENCY EXTRA or ESTATE AGENCY UPDATE must make their own enquiries as no liability or responsibility can be accepted: only the courts may definitively interpret the law as it relates to estate agency practice and procedure.