Home sellers face 'swathe of legal consequences' over PIQs

Published by Jon Land for 24dash.com in Housing

The introduction of the Government’s latest addition to the Home Information Pack (HIP), brings with it 'a swathe of legal consequences' for those selling homes, according to a property law specialist.

From April 6, sellers will need to fill out a Property Information Questionnaire (PIQ). The PIQ is a set of mandatory questions about the property. Most importantly, it commits a homeowner to make representations that have legal ramifications even before a contract has been agreed.

Simon Seaton, director of Fridays Property Lawyers, said: "The PIQ is going to be a minefield for vendors. It asks the vendor difficult, and often subjective, questions, the answers to which are then actionable if a purchaser considers them to be misleading.

"The really big departure is that a 'purchaser' does not need to have purchased before taking action - he can sue without having committed even a deposit if he thinks the information provided is incorrect."

As the PIQ is intended to give the prospective buyer enough accurate information to take preliminary steps towards the purchase of the property, a prospective buyer who incurs expenses in reliance on inaccurate information provided in a PIQ can claim for damages against the seller who completed the PIQ.

These charges would include engaging a conveyancing lawyer, arranging finance and obtaining a valuation.

Seaton added: “For the first time, a buyer will be able to withdraw from a transaction and sue the seller for out-of-pocket expenses running, in some cases, to many thousands of pounds, for providing inaccurate information within the PIQ.

“This is a very tricky area, and not one that estate agents are qualified to advise on. We advocate that sellers consult a property lawyer for help on completing their PIQs.”