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Five Top Tips for CPSEs

on Tuesday, 22 October 2024.

What is the nature and purpose of CPSEs and how can you approach completing them?

What are CPSEs?

The Commercial Property Standard Enquiries (CPSEs) are sets of enquiries used in commercial property transactions to provide buyers (or tenants) with key information about the property being purchased or let. Although there are seven sets, CPSEs 1 and 7 cover general enquires, and are most commonly used. The remaining CPSEs are used on specific transactions, generally involving leases.  

Why do we have them?

CPSEs were designed to help streamline the due diligence process on property transactions, by standardising the property enquiries raised. Whilst they have standardised the process, they are often time consuming to prepare, and care must be taken when completing them.

Top tips

  1. The importance of accuracy - It is fundamental that the CPSE replies are accurate, or the seller could be held liable for misrepresentation, resulting in the contract being rescinded, a claim in damages, or the transaction aborting. For example, in Greenridge Luton One Limited v Kempton Investment Limited [2016] EWCH 91 (Ch), a buyer was entitled to have their deposit returned along with damages after inaccurate replies were given in the CPSEs. For more information see.
  2. Get the right person - Ensure that you are getting the right person to fill out the CPSEs. Who knows the most about the property? They will be the best person for the job, helping to save time which someone else may need to spend hunting around for documentation, and avoiding inaccurate responses.
  3. Can't find the information? - The seller has a legal duty to disclose latent defects in title, whether or not a specific question has been asked by the buyer. A latent defect is one which the buyer cannot be expected to notice on reasonable inspection of the property, for example where the physical boundary does not match the title boundary, or if there is a right of way crossing the property that is not apparent on inspection. If you genuinely do not know the answer or have the information to answer a question, it is best to state, "no response given".
  4. Compile your documentation - It is helpful to have all relevant property documentation needed for the CPSEs (such as your EPC certificate, Asbestos Reports, Insurance documents, invoices, tenancy and service charge documents, etc) to hand when filling them out, and to send copies of the documentation in one go with the replies (rather than to follow). This can save a lot of time and avoid further enquiries (and cost) later on. With that in mind, if you are anticipating a sale or grant of a lease, it is sensible to get your compliance and occupation documentation in order, ready to reference in the CPSEs.
  5. EPC or DEC - People often get the Energy Performance Certificate (EPC) and Display Energy Certificate (DEC) confused. Make sure you have the correct one - an EPC - to hand as failure to have one can delay transactions. You can check the central EPC register.

If you would like to know more about CPSEs, please contact Rebecca Beardsley, in our Commercial Property (Healthcare) team on 07896 119 385, or complete the form below.

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