|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    19th of March 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Property News feed Property News

All Financial News feed All Financial News

Estate agents profit from secret HIP commission

Bookmark and Share

by Gill Montia
”Estate agents profit from secret Hip commission

An investigation by Channel 4 News claims that up to £100 is being added to the cost of some Home Information Packs (HIPS) to line the pockets of estate agents.

In one case cited by the programme, a homeowner was paying almost £150 more for a pack than the price originally quoted by the HIP provider.

The Law Society has condemned the practice of HIP firms paying commissions to property agents and the Royal Institution of Chartered Surveyors says it is investigating the allegations.

AHIPP, the body that represents HIP companies, told the programme that where commission is paid, the HIP provider is acting as an agent for the estate agent in the preparation of the HIP, adding that it is therefore the estate agent who sets the retail price of the HIP.

The highly controversial HIP scheme means vendors have to pay between £300 and £400 for a pack before a house can be marketed.

The packs are intended to speed up and improve the home buying and selling process but are regarded as a waste of time by many property professionals because local searches can be out of date by the time a house is sold and the packs do not contain the one document considered essential by most home buyers, a survey.

The chief executive of the National Association of Estate Agents, Peter Bolton King, has warned that any estate agent receiving commission from a HIP provider, without informing the house seller, is breaking the Association’s rules of conduct and is therefore liable for a fine or expulsion.

Discuss this in the Finance Markets forums

Story link: Estate agents profit from secret HIP commission

News posted: May 19, 2009

Financial Services:

Related financial stories to: Estate agents profit from secret HIP commission:
Previous: «
Next: »

Visited 3818 times, 1 so far today

1 Comment

  1. This doesn’t surprise me. It’s tough times at the moment especially for estate agents. However, I did hear that many estate agents are swallowing the HIPS costs within their own fee’s.

    Comment by Below Market Value — May 21, 2009 @ 2:29 pm

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: ,