When providing replies to CPSEs, the consequences of providing inaccurate responses can have serious repercussions. A key problem area is where replies, when given, are accurate but then the situation changes and the replies then misrepresent the position.

If you are acting as landlord or seller and do not inform us of changes to your replies to CPSEs then the tenant/buyer may seek to rely on your inaccurate response to try and get out of the contract.

Greenridge Luton One Ltd and another v Kempton Investments Ltd [2016]

Facts

  • A seller of an office building provided replies to CPSEs stating that there were no arrears and that they were not in dispute with the current occupant of the property
  • during the course of the transaction, circumstances changed meaning that the replies became inaccurate 
  •  the contract was exchanged but the buyer was not informed of the change in circumstances
  • the buyer became aware of the change and sought to have the contract rescinded

Outcome

  • the courts decided that the buyer could rescind the contract (and get back the deposit!!). The buyer was also awarded damages

What this means for you

  • ensure that CPSE replies are kept up to date with any change in circumstances since damages can be significant
  • if anything changes INFORM US!!
  • if you are unsure, seek advice as to whether or not something needs to be disclosed