Pre-contract Enquiries Flashcards
Can seller face liability for incorrect answers?
Yes
What if a seller declines to answer if they do not have actual knowledge?
Buyer must decide if they want to take risk
What is the form of pre-contract enquiries for commercial?
Commercial Property Standard Enquiries
What is the form of pre-contract enquiries for residential?
Law Society Conveyancing Protocol
What does CPSE1 cover?
- Boundaries
- Right benefiting / burdening
- Access to property
- Physical condition
- Contents
- Utilities and services
- Planning and building regulations
- Occupiers and employees
- Notices and disputes
- Value added Tax
What does CPSE2 apply to?
Where property is subject to commercial tenancies
What does CPSE3 apply to?
On the grant of a new lease
What are the protocol forms for residential properties?
TA6, TA10, TA7, TA8
Which protocol forms are always used?
TA6 and TA10
What does TA6 cover?
- Boundaries
- Right benefiting and burdening property
- Disputes, complaints, notices
- Alterations
- Planning and building regulations
- Occupiers
- Services and utilities
- Energy efficiency
What does TA10 cover?
Identifies fittings and contents included or excluded
What does TA7 cover?
Leasehold information
What does TA8 cover?
New builds
In residential transactions, what additional enquiries can the buyers raise?
Only enquiries that clarify issues arising out of any documents provided
In commercial transactions, what additional enquiries can the buyers raise?
Any enquiries that they wish
What constitutes a misrepresentation?
When seller misrepresents a fact. If buyer relies on and suffers loss, buyer could have action against seller
Can the seller deliberately mislead the buyer by concealing physical defects or answering enquiries dishonestly?
No
What is implied if the seller says ‘not so far as the seller is aware’?
That they have done reasonable investigation into it
When are damages available for a buyer for misrepresentation?
If there is a material difference between the represented and the actual description or value of the property
What happens if the Protocol for residential was completed two months earlier?
Important to confirm and update where necessary replies to the enquiries
