At the start of any commercial property transaction, a prospective buyer will likely want to make enquiries to the seller in order for them to understand the property better. These are known as standard enquiries and come as forms that the seller will fill in to provide further details to the interested buyer with the intention of making the transaction smoother and quicker as any concerns or questions the buyer has regarding the property can be addressed in the forms. In this article we will be exploring what questions the commercial property standard enquiry (CPSE) forms can ask to sellers and the information that can be gathered from them.
A breakdown of the CPSE forms
There are currently seven standard enquiry forms that a commercial property seller might need to complete. They don’t necessarily have to fill in all seven, some won’t be relevant to the circumstances of the transaction, but we will list all of them out below, so you know what they are.
- CPSE 1 – General pre-contract enquiries that need to be completed for all commercial property transactions.
- CPSE 2 – Additional pre-contract enquiries for a property based on tenancies for commercial use.
- CPSE 3 – Additional pre-contract commercial property enquiries regarding granting a new lease.
- CPSE 4 – Additional pre-contract enquiries for a commercial leasehold property for arranging a new lease.
- CPSE 5 – Enquiries before giving up a rack rent commercial lease.
- CPSE 6 – Additional pre-contract enquiries for a property based on residential tenancies.
- CPSE 7 – General brief form of pre-contract enquiries that should be completed for all property transactions.
The most important form to note here is CPSE 1 as this will provide the most information to the buyer about the key features of the commercial property. This enquiry form will include questions that cover the main factors a buyer would want to know such as the condition the property is in, any problems or things to note in relation to boundaries, environmental considerations, capital allowances, and any relevant notices or disputes.
By contrast the remaining forms relate more to the specifics of the transaction, so the seller will only need to complete the forms that are relevant to the nature of the agreement. For example, if the agreement is a lease and not a sale, the future landlord before they grant a new lease to a tenant, will need to fill in the CPSE 3 form (that discusses granting a new lease) as well as the CPSE 1 form.
Even though these forms are very detailed and seem like a chore with the time that will be needed to complete them accurately, they are extremely important and ultimately beneficial to both the seller and the buyer. This is because if any concerns are raised early on in the process it can be dealt with at that time, rather than unexpected problems occurring further down the line, which will be more time consuming to resolve.
A commercial conveyancing expert will be able to help check the details in the forms for a buyer or seller to help make the process as fast and efficient as possible so the transaction can go ahead and reach the completion date without any issues or delays.
Looking for property solicitors in Newcastle?
Whether you’re buying or selling commercial property in Newcastle our team at Toomey Legal can help. Our solicitors have extensive experience in the industry and can help to ensure your conveyancing, paperwork and transaction overall is completed quickly and accurately, so that both parties can come out of the experience happy with the outcome. Contact us today to discuss your commercial conveyancing needs.