Commercial Property Standard Enquiries (CPSEs) aim to speed up transactions by streamlining the type of enquiries asked of sellers in commercial property transactions. CPSEs can come in a number of forms depending on the type of transaction. Sellers are required to provide the buyer or lender, as the case may be, with tailored replies to the standard enquiries.
We have set out some tips in completing your replies to enquiries which are as follows:-
- Start preparing your replies in good time before exchange of contracts. If any issues crop up in the process, you will have enough time to rectify them.
- Ensure your replies are accurate! Inaccurate replies could lead to a claim being made against you for misrepresentation; or even criminal proceedings for fraud. The disclosure of material issues affecting the property whether present or historic is paramount, as this will prevent such claims being made.
- Ensure your replies are as thorough and as clear as you can make them. Lengthy CPSE enquiries can be very time consuming and may seem tedious to complete, however ensuring your replies are easy to understand and as detailed as possible will avoid the ping-ponging of further enquiries and replies, which can be the cause of avoidable delay in such transactions.
- Do not guess the answer if you are unsure about a particular enquiry. It is safer to leave an answer blank than risk making a misrepresentation. If you state that something is ‘not to the Seller’s knowledge’ it may be assumed that you have taken reasonable steps to find the correct answer.
- Disclosure is a continuous process up until the point of exchange of contracts. Do not assume that your first draft replies are in their final form. Day-to-day circumstances can change, and it is very important to keep the replies up-to-date to avoid any claims of misrepresentation.
If you require advice in relation to CPSEs, please do not hesitate to contact a member of our Property team on 0161 832 3304.
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