Home Information Pack - company demanding money

[Romanymagic]

Hi Folks

Bit of a dilemma and wondered if anyone on PH could advise?

Had my property on the market last year for awhile before housing market started to nose dive. At the time we were advised that the Estate Agent could arrange our HIP and that we would only have to pay for the HIP if they sold the property, alternatively we could buy it from them if they didn't sell the property as the HIP is for the lifetime of the property. All fine with that. Market started to go awry and Estate Agent actually came to me to say that it was not worth continuing to market the property for what I was looking for at the time, I communicated back that I was fine with that and that no monies would be outstanding.

Received a letter from local solicitor a few days back stating that we owed a hitherto unheard of company money for the HIP, that we had been sent a previous letter back last year advising us of this (never received) and that we need to pay up in 7 days or face court/death etc.

Anyone have any idea on where I stand with this as I really feel I don't owe any money to his other company. If anything the debt should lie with the unknown company and the estate agent???

Help!

[bigandclever]

Romanymagic said:

the HIP is for the lifetime of the property.

I don't think that's true, the energy certificate has a finite lifespan for instance.

Surely it's a conversation to have with the estate agent.

Edited by bigandclever on Wednesday 11th February 09:13

[Timsta]

Had you contracted the unknown company to do the HIP? Nope? Then they should take it up with who contracted them to do the work, surely?

[Rude-boy]

bigandclever said:

Surely it's a conversation to have with the estate agent.

Bingo!

I suspect that the estate agent signed you up to a deferred payment HIP and that the 9 months credit on that has now expired.

Funny how much EA's forget to tell people when they are signing them up.

[HRG]

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

[Timsta]

If it was the Estate Agent that contracted the company to do the HIP have a look at Privity of Contract

[Rude-boy]

Timsta said:

Had you contracted the unknown company to do the HIP? Nope? Then they should take it up with who contracted them to do the work, surely?

It will have been obtained from Company X via the estate agent. He will just have acted as an agent for Company X.

Have you got the original paperwork from the agent for the HIP etc? What the agent said means nothing the the big picture, it's what is on the contract that counts.

Please remember that what I am saying is just the 'feel' i am getting for this from experience. Truth is that no one can advise you until they have had the chance to see the contract you signed!

[singlecoil]

HRG said:

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

Surprised the OP didn't make that clear at the start.

[HRG]

singlecoil said:

HRG said:

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

Surprised the OP didn't make that clear at the start.

It's a closed question, it should save us a bit of time

[Romanymagic]

HRG said:

singlecoil said:

HRG said:

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

Surprised the OP didn't make that clear at the start.

It's a closed question, it should save us a bit of time

Sorry, yep someone did come round but he advised me that he was working for the Estate Agent and again did not say he was working for a third party.

[Rude-boy]

HRG said:

singlecoil said:

HRG said:

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

Surprised the OP didn't make that clear at the start.

It's a closed question, it should save us a bit of time

Sorry guys but that might not be the case. There are many ways in which a HIP can be obtained or put together. The EPC is only one part of it. It could be that only the searches were obtained (unlikely), in which case there would still be money due, again depending on the contract.

That the property was being marketed at all suggests that the HIP must have been commissioned, in which case there will almost certainly be something to pay, even if it is only £6 for OCE. More likely though it will be the OCE and the searches.

[James P]

Rude-boy said:

bigandclever said:

Surely it's a conversation to have with the estate agent.

Bingo!

I suspect that the estate agent signed you up to a deferred payment HIP and that the 9 months credit on that has now expired.

Funny how much EA's forget to tell people when they are signing them up.

I think this is what I signed up to when I sold last year although the EA did make it clear that I would have to pay if the property did not sell.

[Romanymagic]

Rude-boy said:

HRG said:

singlecoil said:

HRG said:

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

Surprised the OP didn't make that clear at the start.

It's a closed question, it should save us a bit of time

Sorry guys but that might not be the case. There are many ways in which a HIP can be obtained or put together. The EPC is only one part of it. It could be that only the searches were obtained (unlikely), in which case there would still be money due, again depending on the contract.

That the property was being marketed at all suggests that the HIP must have been commissioned, in which case there will almost certainly be something to pay, even if it is only £6 for OCE. More likely though it will be the OCE and the searches.

So I could have to pay out then?

[Martial Arts Man]

The way I see it is that the company who did the HIP had a contract with the estate agent, not yourself. As far as I am aware, legally that you have no obligation to pay this company.

You need to have a conversation with the estate agent and the company who conducted the HIP.

You had no contact with this third party rght? No conversation that could be seen to be the forming of a contract with them? If not, you'll be fine. (I am no lawyer, just remember similar things being said in threads previous).

Could be a ball ache though...


Things like this really piss me off to be honest; you are going to have to waste loads of time on someone else's screw up!

Best of luck!


Edit to say: even if you have an agreement with the estate agent to provide a HIP, party C cannot chase you for the debt.

Edited by Martial Arts Man on Wednesday 11th February 09:51

[singlecoil]

Romanymagic said:

Rude-boy said:

HRG said:

singlecoil said:

HRG said:

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

Surprised the OP didn't make that clear at the start.

It's a closed question, it should save us a bit of time

Sorry guys but that might not be the case. There are many ways in which a HIP can be obtained or put together. The EPC is only one part of it. It could be that only the searches were obtained (unlikely), in which case there would still be money due, again depending on the contract.

That the property was being marketed at all suggests that the HIP must have been commissioned, in which case there will almost certainly be something to pay, even if it is only £6 for OCE. More likely though it will be the OCE and the searches.

So I could have to pay out then?

Until we hear exactly what you did and did not agree to, nobody can tell you one way or the other. Any chance of a fuller explanation as to what was in the contract?

[Rude-boy]

Romanymagic said:

Sorry, yep someone did come round but he advised me that he was working for the Estate Agent and again did not say he was working for a third party.

It'll most likely have been short hand for explaining who they were.

There are a number of different ways HIPs can be compiled and obtained. For example when we get them for clients we usually go to a 3rd Party as it is cheaper for one property than we could time and disbursement cost ourselves. We do make it clear to the client that this is what we do though. If you were a developer selling 3+ plots though we would compile tailor made HIPs, again as it is the cheaper way for the client.

We don't offer deferred payment HIPs though as it is just too much hassle for all parties, unfortunately you are learning first hand just one of the problems with these. If one of our clients is after that sort of HIP we send them direct to the HIP provider we use, or suggest they talk this through with the agent as we are lucky in that most of the agents our way play with a straight bat.

[Romanymagic]

singlecoil said:

Romanymagic said:

Rude-boy said:

HRG said:

singlecoil said:

HRG said:

Did anyone come into your house to perform the survey?

Y/N

*Delete as applicable.

Surprised the OP didn't make that clear at the start.

It's a closed question, it should save us a bit of time

Sorry guys but that might not be the case. There are many ways in which a HIP can be obtained or put together. The EPC is only one part of it. It could be that only the searches were obtained (unlikely), in which case there would still be money due, again depending on the contract.

That the property was being marketed at all suggests that the HIP must have been commissioned, in which case there will almost certainly be something to pay, even if it is only £6 for OCE. More likely though it will be the OCE and the searches.

So I could have to pay out then?

Until we hear exactly what you did and did not agree to, nobody can tell you one way or the other. Any chance of a fuller explanation as to what was in the contract?

Fair play. Will need to dig the estate agent paperwork out this evening.

[Dogwatch]

Surely company X should have sent you the HIP with an invoice? At them moment you don't know if they have done anything apart from calling at the house.

[Rude-boy]

Romanymagic said:

So I could have to pay out then?

As another has said, until they have seen the contract no firm answer can be given, only suggested answers based on what you have said and our experience. ie an educated guess!

Based on what you have said I think you will find that you have entered into a contract with the HIP provider with the estate agent acting as an agent of the HIP company (selling the HIP to you on their behalf).

Is the EA still trading out of interest? One problem I have heard of, but not been able to verify, is where there have been deals like this done but the EA has folded in recent months. In the instance I was told about there was apparently a clause in the agreement that if the EA folded then the Seller would become liable...

[Rude-boy]

Dogwatch said:

Surely company X should have sent you the HIP with an invoice? At them moment you don't know if they have done anything apart from calling at the house.

Not always the case. Until paid for in full the HIP is not the property of the Seller and therefore whilst one could be made available for inspection by the Seller at the EA's offices they are not entitled to take a copy away or to have one sent to them.

There are all sorts of different ways the HIP agreement could have been drafted and as said the best thing is for RM to look at the paperwork he signed.