Learning Outcomes
After reading this article, you will be able to explain the purpose and legal effect of pre-contract enquiries of the seller, identify the main areas covered by standard forms, and apply the rules on caveat emptor and misrepresentation. You will also be able to advise on the risks of incomplete or inaccurate replies and understand the exam-relevant consequences for both buyers and sellers.
SQE1 Syllabus
For SQE1, you are required to understand the role and legal significance of pre-contract enquiries of the seller in property transactions. Focus your revision on:
- The principle of caveat emptor and the buyer’s duty to investigate
- The seller’s obligations when replying to pre-contract enquiries
- The legal consequences of inaccurate or misleading replies (misrepresentation)
- The use and content of standard forms (e.g., TA6 for residential, CPSE for commercial)
- The practical impact of pre-contract enquiries on risk allocation and contract formation
Test Your Knowledge
Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.
- What is the legal effect of a seller’s inaccurate reply to a pre-contract enquiry?
- Which standard form is typically used for pre-contract enquiries in residential property transactions?
- Does the seller have a general duty to disclose all defects in the property?
- What is the main legal principle that places the burden of investigation on the buyer?
Introduction
When buying or selling property, pre-contract enquiries of the seller are a critical step in the transaction. These are formal questions raised by the buyer’s solicitor to obtain information that may not be apparent from the title documents or a physical inspection. The answers help the buyer decide whether to proceed and on what terms.
The Principle of Caveat Emptor
Property transactions in England and Wales are governed by the rule of caveat emptor—let the buyer beware. This means the buyer is responsible for investigating the property and cannot later complain about defects that could have been discovered by reasonable enquiry or inspection.
Key Term: caveat emptor The legal rule that the buyer is responsible for investigating the property and bears the risk of undiscovered defects.
The Seller’s Duty and Misrepresentation
Generally, the seller is not obliged to volunteer information about defects or adverse matters. However, if the seller chooses to answer a pre-contract enquiry, the reply must be accurate and not misleading. If a seller gives an incorrect or incomplete answer, and the buyer relies on it, the buyer may have a claim for misrepresentation.
Key Term: misrepresentation A false or misleading statement of fact made by one party to another, which induces the other party to enter into a contract.
Standard Forms: TA6 and CPSE
To streamline the process, standard forms are used for pre-contract enquiries. In residential transactions, the TA6 Property Information Form is completed by the seller. For commercial transactions, the Commercial Property Standard Enquiries (CPSE) forms are used.
Key Term: TA6 Property Information Form A standard questionnaire completed by the seller in residential property transactions, covering boundaries, disputes, alterations, guarantees, and other key matters.
Key Term: Commercial Property Standard Enquiries (CPSE) A set of standard forms used in commercial property transactions to obtain detailed information from the seller about the property.
Main Areas Covered by Pre-contract Enquiries
Pre-contract enquiries typically cover:
- Boundaries and disputes
- Rights of way and easements
- Occupiers and tenancies
- Planning permissions and building regulations
- Structural alterations and guarantees
- Environmental matters (e.g., contamination, flooding)
- Insurance claims and warranties
The buyer’s solicitor may also raise additional, property-specific enquiries if particular risks are identified.
Legal Effect of Replies
A seller’s reply to a pre-contract enquiry is treated as a representation. If the reply is false or misleading and the buyer relies on it, the buyer may be entitled to rescind the contract or claim damages for misrepresentation. However, if the seller genuinely does not know the answer, it is acceptable to reply “not so far as the seller is aware,” provided this is true.
Worked Example 1.1
A buyer asks the seller whether any disputes exist with neighbours. The seller replies “no,” but in fact there is an ongoing boundary dispute which the seller forgot to mention. After completion, the buyer discovers the dispute and suffers loss.
Answer: The seller’s reply was inaccurate. The buyer may have a claim for misrepresentation, as the seller’s answer induced the buyer to proceed with the purchase.
Worked Example 1.2
The seller completes the TA6 form and states that all necessary planning permissions were obtained for an extension. In reality, no building regulations approval was obtained. The buyer discovers this after completion when the local authority serves an enforcement notice.
Answer: The buyer may be able to claim damages or rescind the contract for misrepresentation, as the seller’s reply was misleading and the buyer relied on it.
Exam Warning
If a seller is unsure about an answer, they should check before replying. Guessing or omitting material facts can lead to liability for misrepresentation, even if the omission was not intentional.
Revision Tip
Always review the standard forms (TA6, CPSE) and be able to identify the main areas covered. Practice drafting additional, property-specific enquiries for different scenarios.
Key Point Checklist
This article has covered the following key knowledge points:
- The buyer is responsible for investigating the property (caveat emptor).
- The seller is not obliged to disclose defects but must answer enquiries honestly and accurately.
- Replies to pre-contract enquiries are treated as representations; inaccurate replies may result in a claim for misrepresentation.
- Standard forms (TA6 for residential, CPSE for commercial) are used to structure enquiries.
- Pre-contract enquiries cover boundaries, rights, occupiers, planning, alterations, and environmental matters.
- The buyer’s solicitor may raise additional enquiries if specific risks are identified.
Key Terms and Concepts
- caveat emptor
- misrepresentation
- TA6 Property Information Form
- Commercial Property Standard Enquiries (CPSE)