Property Information Questionnaire
Encyclopedia
The Property Information Questionnaire (PIQ) is a document completed by the seller containing details of utilities and services to the property, access arrangements, council tax
bands, changes to the property parking arrangements, damage to the property and leasehold information. The PIQ is a required part of the Home Information Pack
(HIP), a set of documents that must be provided before a property in England and Wales
can be put on the open market for sale with vacant possession. In December 2008, the Labour Minister for Housing, Margaret Beckett
, announced proposals to improve and simplify the consumer content of the HIP. As of April 6, 2009, all newly commissioned HIPs must contain a PIQ.
The PIQ was designed to be easy for sellers to complete without professional help and will provide buyers with basic, useful information about a property that will help to inform their decision to view a property or make an offer. The questionnaire is of a similar nature to the previous Home Use Form (HUF). Prior to the April, 2009, the HUF was an authorized document that was rarely included in a seller’s HIP due to the form being non-mandatory.
With the suspension of HIPs from May 21, 2010, Property Information Questionnaires are now redundant and not required when selling a house in the United Kingdom.
Under the provisions of the Housing Act 2004
a Home Information Pack, previously known as a Seller’s Pack, must be provided before a property in England and Wales can be put on the open market for sale with vacant possession. The pack comprises a set of documents about the property: an Energy Performance Certificate
, local authority searches, title documents, guarantees, etc. While the introduction of HIPs has been subject to delays and reduced requirements, they became mandatory for homes with four or more bedrooms on August 1, 2007 and were extended to three-bedroom properties from September 10 of that year.
While recent government research indicating that both sellers and buyers have largely been ignoring the HIP, representatives of the AHIPP argue that the questionnaire will significantly increase the number of consumers viewing the pack. The Conservative Party and lawyers alike argue that political dogma is behind the decision to continue with HIPs, despite their potential to further damage the property market. Lawyers in particular point out that the PIQ represent an erosion of the legal doctrine of caveat emptor
, indicating that the PIQ is a legally binding document which, for first time, gives a buyer the ability to withdraw from a transaction and sue the seller for providing inaccurate information within the PIQ regardless of whether or not the information was provided negligently.
Council tax
Council Tax is the system of local taxation used in England, Scotland and Wales to part fund the services provided by local government in each country. It was introduced in 1993 by the Local Government Finance Act 1992, as a successor to the unpopular Community Charge...
bands, changes to the property parking arrangements, damage to the property and leasehold information. The PIQ is a required part of the Home Information Pack
Home information pack
Under Part 5 of the Housing Act 2004 a Home Information Pack , sometimes called a Seller's Pack, was to be provided before a property in England and Wales could be put on the open market for sale with vacant possession. There is separate legislation for Scotland that requires anyone selling a...
(HIP), a set of documents that must be provided before a property in England and Wales
England and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
can be put on the open market for sale with vacant possession. In December 2008, the Labour Minister for Housing, Margaret Beckett
Margaret Beckett
Margaret Mary Beckett is a British Labour Party politician who has been the Member of Parliament for Derby South since 1983, rising to become the Deputy Leader of the Labour Party under John Smith, from 18 July 1992 to 12 May 1994, and briefly serving as Leader of the Party following Smith's death...
, announced proposals to improve and simplify the consumer content of the HIP. As of April 6, 2009, all newly commissioned HIPs must contain a PIQ.
The PIQ was designed to be easy for sellers to complete without professional help and will provide buyers with basic, useful information about a property that will help to inform their decision to view a property or make an offer. The questionnaire is of a similar nature to the previous Home Use Form (HUF). Prior to the April, 2009, the HUF was an authorized document that was rarely included in a seller’s HIP due to the form being non-mandatory.
With the suspension of HIPs from May 21, 2010, Property Information Questionnaires are now redundant and not required when selling a house in the United Kingdom.
History
The rule changes which came into effect on April 6, 2009 require every home to have a completed HIP in place before it can be put on the market. Before the new law, a HIP was required only to have been ordered before a home could be placed on the market.Under the provisions of the Housing Act 2004
Housing Act 2004
The Housing Act 2004 is an Act of the Parliament of the United Kingdom. It introduces Home Information Packs, which came into force for homes of four or more bedrooms on 1 August 2007. It also significantly extends the regulation of houses in multiple occupation by requiring HMOs to be licensed...
a Home Information Pack, previously known as a Seller’s Pack, must be provided before a property in England and Wales can be put on the open market for sale with vacant possession. The pack comprises a set of documents about the property: an Energy Performance Certificate
Energy Performance Certificate
Energy Performance Certificates were introduced in England and Wales on 1 August 2007 as part of Home Information Packs for domestic properties with four or more bedrooms . When the requirement for HIPs was removed in May 2010, the requirement for EPCs continued. The scheme for HIPs was extended...
, local authority searches, title documents, guarantees, etc. While the introduction of HIPs has been subject to delays and reduced requirements, they became mandatory for homes with four or more bedrooms on August 1, 2007 and were extended to three-bedroom properties from September 10 of that year.
Contents
Sellers are required to complete the PIQ and to be "truthful and accurate". A PIQ is typically about eight pages long, unless the home being sold is a leasehold property, in which case there are further questions to be completed. There are two types of questionnaire: one for newly-built properties and another for other types of property. The information required on the PIQ only relates to the time during which the seller owned the property. However, if any of the information changes before the sale is completed, the seller is obliged to update the PIQ. The PIQ is available in a paper format from some Home Information Pack providers. It can be downloaded from the Communities and Local Government web site or it can be used in an online interactive format.Controversy
The introduction of the PIQ has sparked heated debate. Estate Agents in particular claim that the PIQ adds further delay to an already convoluted process. HIP providers counter-claim that there need not be any delay as long as the vendor fills out the questionnaire in a timely fashion. The Association of Home Information Pack Providers (AHIPP) claims its members are currently turning HIPs around in an average of five days. But the association warns that this is only possible if sellers complete the PIQ rapidly and allow energy assessors into their homes as quickly as possible.While recent government research indicating that both sellers and buyers have largely been ignoring the HIP, representatives of the AHIPP argue that the questionnaire will significantly increase the number of consumers viewing the pack. The Conservative Party and lawyers alike argue that political dogma is behind the decision to continue with HIPs, despite their potential to further damage the property market. Lawyers in particular point out that the PIQ represent an erosion of the legal doctrine of caveat emptor
Caveat emptor
Caveat emptor is Latin for "Let the buyer beware". Generally, caveat emptor is the property law doctrine that controls the sale of real property after the date of closing.- Explanation :...
, indicating that the PIQ is a legally binding document which, for first time, gives a buyer the ability to withdraw from a transaction and sue the seller for providing inaccurate information within the PIQ regardless of whether or not the information was provided negligently.