Property Law 3 - Commercial Flashcards
What are the standard seller enquiries protocol forms for commercial property?
CPSE1 - Applies to all commercial property transactions,
CPSE2 - Applies where the property is subject to commercial tenancies (for example, the purchase of an office block or an industrial estate)
CPSE3 - Applies on the grant of a new lease (for example, when acting for a tenant on an industrial estate)
CPSE4-6 - Applies to specific other circumstances (less commonly used)
What is covered by CPSE1 (for commercial property)?
Covers such matters as:
- responsibility for boundaries, and their extent
- rights benefiting and burdening the property
- access to the property
- physical condition
- contents
- utilities and services
- planning and building regulations
- occupiers and employees
- notices and disputes
- Value Added Tax (VAT) treatment
What are the standard seller enquiries protocol forms for residential property?
TA6 Property information form - Always used.
TA10 Fittings and contents form - Always used. Identifies any fittings and contents included or excluded in the sale. Also identifies those fittings or contents that the buyer may buy in addition to the property.
TA7 Leasehold information form - Used where the property is a long leasehold (eg, a flat on a 99 year lease)
TA8 New home information form – used where the property has been newly built
What does TA6 Property information from (for residential property) cover?
Always used. Covers such matters as:
- boundaries
- rights benefiting and burdening the property
- disputes, complaints and notices
- alterations
- planning and building regulations
- occupiers
- services and utilities
- energy efficiency
What are the standard terms that limit the buyers ability to rescind the contract for misrepresentation?
An error or omission only entitles the buyer to rescind the contract:
(a) where it results from fraud or recklessness, or
(b) where the buyer would be obliged, to his prejudice, to accept a property differing substantially (in quantity, quality or tenure) from that which the error or omission had led it to expect.’
Damages are only available where there is ‘a material difference between the represented and the actual description or value of the property’
Is the Law Society Conveyancing Protocol suitable for new build homes?
No
Which Solicitors MUST adopt the Law Society Conveyancing Protocol
Solicitors who are members of the Law Society’s Conveyancing Quality Scheme
What does the Law Society Conveyancing Protocol apply to?
Residential transactions of freehold and leasehold property.
When using the Law Society’s Conveyancing Protocol, which list accurately sets out what the solicitors agree to adopt?
- Standard Conditions of Sale (incorporated into the contract),
- Property Forms,
- Formulae for exchange,
- Code for Completion by Post.
Within what period should the seller’s solicitor update responses to enquiries under the Law Society Conveyancing Protocol?
The seller’s solicitor should confirm and update, where necessary, replies to enquiries if completed more than two months earlier
Does the seller have to deal with enquiries that do not comply to the protocol?
No - The seller’s solicitor should only attend to the Property Forms and any additional enquiries that are essential to the transaction.
What are the consequences of breaching the protocol if a solicitor has signed up to it?
If a solicitor breaches the Protocol, then the Law Society may require an explanation, potentially leading to their being monitored and even removed from membership of the Conveyancing Quality Scheme.
