Property Information Questionnaire (PIQ) - Fridays response to estate agent's comments

Property information questionnaire (PIQ)   Over the past few weeks, the Estate Agency Press has raised a number of questions about Property Information Questionnaires (PIQs).  The following is a representative sample of those comments along with Friday’s responses:

Comment

“Buyers are unlikely to accept the PIQ as part of the conveyancing process and will require Sellers to complete the existing Sellers’ Property Information Questionnaire.  This will lead to duplication and further expense for Sellers.”

Fridaysmove Response

Whilst it is agreed that if a buyer asks for a newly-completed Sellers’ Property    Information Questionnaire this will result in a certain duplication by the Seller to answer questions, it will not result in further expenses for sellers. There is nothing to suggest that additional expense will be incurred by completing a Sellers’ Property Information Form as well as a Sellers’ Property Information Questionnaire.  As to the issue of whether or not the Sellers’ Property Information Questionnaire will be accepted by the buyer’s conveyancing lawyers, the chances are that they will albeit over a period of time.

It is definitely  true to say that the world of conveyancing moves slowly but over the past 20 years there have been various new protocol forms introduced into the conveyancing process that have ultimately been accepted over a period of time.  The chances are that most buyer’s conveyancing lawyers will simply ask  “Can you please confirm that the information contained within the Property Information Questionnaire remains accurate.”  This will cover the fact that the PIQ, sitting within the Home Information Pack,  may well have been completed some months before the Buyer accepted an offer on the property.

Comment

“The changes to the Home Information Pack Regulations on 6 April – which will mean no marketing of a residential property can take place until a substantial proportion of the Home Information Pack is complete – will amount to an assault on personal liberty whilst inflicting more damage on the housing marketing.”

Fridaysmove Response

This is simply nonsense.  Regardless of whether you accept the introduction of the Property Information Questionnaire and Home Information Packs as good ideas or not, there is certainly no infringement on personal liberty.  We at Fridaysmove would suggest to those floating such arguments, that they take the up the matter with the Courts and have the assertion formally tested.  Undoubtedly they won't because they know the answer they will get.

Comment

“A new seven page document, the 'Property Information Questionnaire (PIQ), will be required to be in the Home Information Pack .  This form must be completed by the Seller and asks questions relating to their property such as rights of way, building works, flood risks and leasehold information.  The Government claims that potential buyers will want to see this information before viewing the property but the experience of an overwhelming majority of estate agents is that only a handful of buyers ever ask to see the Home Information Pack. “

Fridaysmove Response

There is a very valid point in the above comment.  It is generally accepted that less than 20 per cent of buyers look at the Home Information Pack. The first time they are likely to see a PIQ or Home Information Pack is during the conveyancing process.

Comment

“The introduction of the Property Information Questionnaire (PIQ) may well result in Home Information Packs being looked at by buyers”

Fridaysmove Response

Fridaysmove are intrigued as to why the Government has not actually made more of a splash at the fact that the PIQ is to be included within the Home Information Pack, thereby promoting the relevance of the HIP itself.  

In Fridays’ experience, many estate agents that have worked with us or other conveyancing firms phone to say they have an  party interested in a property but would like to know how many years remain under the Lease.  This information will be available in the Property Information Questionnaire.  Many purchasers are interested in at the very early stages as to whether or not there are any major works planned to the building and as to whether or not there are any significant service charges about to arise, again, this would be dealt with in the Property Information Questionnaire.  If the property has had extensive work to it many buyers may well want to be armed with the information before they put an offer in on the property as to whether or not the appropriate planning permission and building regulation approvals are in place. 

Whilst it is understandable that estate agents are concerned about actual complexities to the Home Information Pack and potential delays in marketing properties, the jury is still out as to whether or not the PIQ will result in more buyer’s viewing the Home Information Pack prior to placing an offer on the property.

Comment

"He has now identified a potential problem with the Property Information Questionnaire (PIQs)  for repossessions where the sellers – i.e. the lenders – will not have seen the property and will not necessarily have any knowledge as to, for example, its utilities (which will probably have been disconnected in any case) or parking arrangements…”

Fridaysmove Response

There is plenty of opportunity within the Property Information Questionnaire to place “not known”.  In this situation whereas a buyer may well have concerns about seeing a PIQ with “not known” as the predominant answer, the case where a buyer knows that the property is being sold by a mortgagee in possession they would hardly expect to see anything other than “not known”.  They need only check the situation with their conveyancing lawyer and they will find that the the mortgagee's conveyancing lawyer will very rarely send replies to enquiries or a Sellers’ Property Information Form and simply in the covering letter state that the mortgagee in possession ( their client) has no knowledge of the property.

Comment

“The lender will inevitably ask the agent to complete the form and where are we under the Property Misdescriptions Act?”

Fridaysmove Response

A couple of comments could be made.  First of all, it is likely that the Home Information Information Pack and Property Information Questionnaire will be generated only by those Home Information Pack Providers with whom the mortgagees will have a relationship with as opposed to expecting the estate agent to supply the answers. 

It may well be that the lender asks their conveyancing lawyers to prepare the Property Information Questionnaire (PIQ) or Home Information Pack in this case.  However, in the event that the bank specifically asks the agent to complete the PIQ, provided that the agent has the specific letter from the mortgagee/lender authorising the agent to complete the PIQ, it is likely that the OFT will apply a reasonableness test in this case. 

Furthermore, the agent can further protect themselves by applying the appropriate disclaimer on the individual answers.  For guidance on the caveats or disclaimers that should be given in a situation such as this please contact your preferred conveyancing lawyer, call Fridaysmove for assistance or log on to our online Property Information Questionnaire.