31
Jul
HIPs -
OFT advises
estate agents on their obligations
The OFT has
today advised all estate agents in England and Wales that a failure
to comply with the new Home Information Packs (HIPs) regulations
could result in a ban from estate agency work.
From 1 August 2007, all homes for sale with four or more
bedrooms in England and Wales will need a HIP with details of the property
title, energy performance, planning permissions and searches for
prospective buyers. Under the Estate Agents Act and HIPs
regulations, the OFT has the power to assess
whether an estate agent is fit to practise.
The OFT can
impose a ban on an estate agent found to be in breach of the Act
and can also issue a Warning Order. Once a Warning Order has been
issued, if the agent continues to breach the Act, the
OFT can make a
Prohibition Order banning the agent from practising as an estate
agent in the future.
Mike Haley, OFT Head of Consumer Protection
said: "The new HIPs come into force tomorrow and it is important
that agents are aware of their obligations and the possible
consequences if they fail to comply. If an agent fails to comply,
this could trigger an investigation into an agent's fitness to
continue estate agency work".
Notes
1. The OFT
enforces the Estate Agents Act 1979 and regulations, including the
Estate Agents (Undesirable Practices) (No.2) Order 1991, made under
it ('the Act'). Where an estate agent breaches certain laws
including provisions of the Act or has been convicted of certain
criminal offences he can be banned by the OFT from doing estate agency
work if we consider him unfit to carry on such work. The
OFT can also
issue a Warning Order against an agent who has breached certain
provisions of the Act, where such a breach is not serious enough to
cause him to be prohibited but if repeated would be.
2. A failure to comply with the HIPs regulations by an estate
agent will be an 'undesirable practice' and hence a 'trigger' for
the OFT to
consider the agent's fitness to continue doing estate agency
work.
3. The Act covers anyone who, in the course of business, is
engaged in 'estate agency work'. This means introducing to someone
else a person who wishes to buy or sell land or property, and being
involved in negotiating the subsequent deal. The work must be in
the course of business, whether as employer or employee, and as a
result of instructions from a client. The land or property may be
commercial, industrial, agricultural or residential.
4. As of tomorrow, sellers of four or more bedroomed homes will
be required to provide potential buyers with a HIP, including an Energy
Performance Certificate. HIPs for smaller properties will be
required from a later date yet to be decided.
5. Information on HIPs for Estate Agents can be found on the
Department
of Communities and Local Government website.
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