Regulations: Law Society reveals details of its own on-line and compliant information pack

The government this week published its long-awaited details on home information packs (HIPs) as the Law Society announced it is developing its own product - and warned that the new regulations currently fail to get to grips with home condition reports (HCRs).


Announcing the draft regulations for consultation on HIPs - set to become compulsory in 2007 - housing minister Yvette Cooper pledged it would cut costs and prevent sales from falling through because parties would have earlier access to information. 'It is crazy that over £1 million a day is wasted [on failed transactions],' she argued.


The regulations specify what information sellers would have to provide, including details such as a sale statement, a full description of the property, evidence of title, search information, warranties and guarantees, and a HCR. Only HCR inspectors certified by the government will be allowed to carry out such work. Ms Cooper said they would be 'robustly' monitored and audited.


But Law Society President Kevin Martin said it already had concerns about the proposed regulations. 'There are still many problems surrounding the issue of HCRs and choice of inspectors and their regulation,' he warned. 'The HCR is one of the most important components of the packs. It is worrying that the government still has not set up appropriate certification arrangements to regulate and control not only the production of the reports but the people who produce them.'


Speaking at the Law Society property section annual conference in London last week, which attracted some 180 attendees, Mr Martin said the Society's HIP scheme would have numerous advantages. '[It will] include a fast, efficient on-line service which will require nothing more than a PC and an Internet connection,' he explained. 'The pack will be fully compliant with government's HIP regulations.'


But a poll of delegates who attended the conference indicated that although 64% planned to offer a HIP service, some 70% of respondents thought sellers would be averse to the packs, with a similar number concerned about unregulated non-lawyers becoming involved. Around 85% thought Law Society involvement would attract public confidence.


Solicitors can register their interest in the Law Society HIPS pack at hips@lawsociety.org.uk.