Selling without agent and HIPs

[Woodstocker]

We have had our house valued by 3 agents - 2 suggested exactly the same selling price and one was about 12% lower. We were ready to put it on the market with one of these agents.

By coincidence, my wife met a neighbour at the doctors (!) who recognised her and got chatting. He was saying how he would like to marry and move out of the extended family home (he lives there with three generations) and get his own place nearby - he really wished a property would come on the market, ideally on our road.

She told him that we had been having ours valued and he asked her to promise to tell him before we put it on the market (he knows there would be other people on the road in the same situation and wouldn't want to get into a bidding war!). There are a number of families living in the same situation on our street. A little later he came out of his house opposite, chivvied on by his dad in the background, to say he was serious about it, and that his dad had the cash to buy the house for him (it is not uncommon for things work this way in his ethnic community in this area).

Apart from this seeming like ridiculously good luck (potentially), it raises some questions:

If you sell without an agent, where do you start? Just go to a solicitor?

And my main question: Do you need to prepare a HIP in these circumstances?

Any advice would be gratefully received.

Thanks

[Ownerhome]

If you decided to sell without an agent, then you would just need to approach a conveyancing solicitor. All dealings will be with you directly, rather than through an estate agent.

Unfortunately you would need a HIPs if you sold your property to a neighbour or friend, even if you did not market it. You could however, defer the HIP payment until the house sale went through, this would cost you slightly more than up front payment, but most of our HIPs are sold this way.

You are in a very fortunate position have a potential buyer (and a cash buyer too!), ready and waiting to buy your property.

Good luck and PM me if you need a HIPs and/or Conveyancing price

[IFA]

You don't need a HIP, you would only need one if the property is advertised for sale, and selling privately does not require advertising it to potential buyers.

Check out the rules on the direct.gov.uk website

See section "Why you need a HIP"

The first item confirms what I have said above.

[Ownerhome]

Originally Posted by IFA

You don't need a HIP, you would only need one if the property is advertised for sale, and selling privately does not require advertising it to potential buyers.

Check out the rules on the direct.gov.uk website

See section "Why you need a HIP"

The first item confirms what I have said above.

Actually you are wrong. Read it again...you don't need a HIPs if you are selling to a family member....not a neighbour, regardless of whether you are actively marketing the property.

We sell them so I know the rules and would never advise someone that they need one if they don't!

[IFA]

The Direct.gov sites states:

You don’t need a HIP for:

• properties where there is no marketing, for example if you are selling to a member of your family

The selling to a family member is given simply as an example of when you might sell a property without the need for advertising, it is not the only circumstance where this might happen.

[googler]

"You don’t need a HIP for:

• properties where there is no marketing, for example if you are selling to a member of your family "

The operative phrase is "properties where there is no marketing", not the example given......

[IFA]

Well, it seems as if Googler and I agree, but Ownerhome has a different interpretation of the rules. He may be right, but I really don't think so.

The most sensible advice would be to contact your local Trading Standards Office to discuss it with them. Trading Standards are the agency charged with enforcement of HIP regulations, and your local office would be happy to advise on their understanding of the rules.

With regard to selling without an agent, that's simple, just contact a conveyancing solicitor with the details. Hopefully the sale will go smoothly for you, without an agent to help things stay on track it will be down to you and the buyer to resolve any issues that arise.

[googler]

Just look up the legislation online.

The actual act of parliament should be on a government website somewhere..... hang on; it's around here somewhere .....

Ah, yes - section 149 of the Housing Act 2004;


149 Meaning of “on the market” and related expressions

(1) In this Part references to “the market” are to the residential property market in England and Wales.
(2) A residential property is put on the market when the fact that it is or may become available for sale is, with the intention of marketing the property, first made public in England and Wales by or on behalf of the seller.
(3) A residential property which has been put on the market is to be regarded as remaining on the market until it is taken off the market or sold.
(4) A fact is made public when it is advertised or otherwise communicated (in whatever form and by whatever means) to the public or to a section of the public.

...and if the property is put 'on the market' as defined above, a HIP is required.

[Richard Webster]

Sorry, but this is a storm in teacup. The property hadn't been marketed and therefore no HIP is needed for a sale to the person in question.

As a conveyancing solicitor (assuming any property involved is in England/Wales) I believe the information given in the post to be useful but I accept no liability except to fee-paying clients.