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CPSE amended to take into account CRC issues
Practical Law UK Legal Update 8-503-1709 (Approx. 5 pages)
CPSE amended to take into account CRC issues
by Practical Law Property
| Published on 10 Mar 2011 • England, UK, Wales |
Additional enquiries have been added to CPSE 1, 2 and 4 in order to obtain preliminary information on Carbon Reduction Commitment Energy Efficiency Scheme (CRC) issues. More detailed supplementary enquiries are also available. (Free access.)
Speedread
New versions (3.1) have been released for CPSE.1, CPSE.2 and CPSE.4 and are available for immediate use. The new versions contain introductory enquiries on issues arising under the CRC Energy Efficiency Scheme (CRC). Detailed supplemental CRC enquiries (with drafting notes) are available to all on the PLC website.
This follows the issue, in May and June 2010, of advanced consultation drafts of CPSE.6 (enquiries on CRC issues). Having taken the views of its member firms, the London Property Support Lawyers Group (LPSLG) has decided, for the time being, not to include detailed enquiries on CRC in the CPSE suite of documents. Instead, it suggests advising clients to address CRC issues directly with the other party to the transaction, where CRC could be relevant to them.
PLC Property and LPSLG have agreed that the more detailed enquiries in the consultation drafts should continue to be made available as PLC documents. These will be freely available to both PLC Property subscribers and non-subscribers, and can be used as supplemental enquiries for appropriate clients or transactions. These supplementary enquiries will continue to contain detailed drafting notes, which explain the reason for the enquiries and the relevant features of the CRC.
If you don’t yet subscribe to PLC, you can request a free trial by completing this form or contacting the PLC Helpline.
Changes to the CPSE
CPSE.1
New enquiries 10.1(b) and (c) have been inserted, together with appropriate drafting notes. These are designed to establish who, within the Seller, is the right person for the Buyer (or his representative) to talk to direct about Carbon Reduction Commitment Energy Efficiency Scheme (CRC) issues.
Enquiry 10.3, together with its drafting note, asks whether the Property has a half hourly meter settled on the half hourly market. This type of meter may mean that the Buyer will in future have to register as a participant in the CRC. Identifying whether a meter falls into this description is not necessarily straightforward.
For the latest version of CPSE.1 see, CPSE.1 (version 3.1) General pre-contract enquiries for all commercial property transactions.
CPSE.2
New enquiry 10.13 has been added, asking whether there is any correspondence between the Seller and its tenants in relation to CRC costs for the Property or the building of which it forms part. There is no guidance note for this.
For the latest version of CPSE.2 see, CPSE.2 (version 3.1) Supplemental pre-contract enquiries for commercial property subject to tenancies.
CPSE.4
New enquiry 5.10 has been added, asking whether there is any correspondence between the Seller and its landlord (or any previous landlord) in relation to CRC costs for the Property or the building of which it forms part. There is no guidance note for this.
For the latest version of CPSE.4 see, CPSE.4 (Version 3.1) Supplemental pre-contract enquiries for commercial leasehold property on the assignment of the lease.
Revised Guidance notes and request for replies
Revised versions of the following have also been published, which refer to the new versions of CPSE.1, CPSE.2 and CPSE.4:
- GN/CPSE (version 3.1) Guidance notes on the Commercial Property Standard Enquiries.
- RQ (version 3.1) Request for replies to Commercial Property Standard Enquiries.
Supplementary CRC enquiries
Prospective buyers and tenants may wish to raise more detailed CRC enquiries (either in response to the answers received to the CPSE, or alongside initial submission of the CPSE). They may wish to do so through their lawyer, surveyor, energy consultant or direct with the seller or landlord. Solicitors acting for a prospective seller or landlord may receive such enquiries.
For those users who are unfamiliar with the CRC, the drafting notes to these supplementary enquiries will be a useful starting point, see Additional enquiries on CRC issues - which to select.
The supplementary CRC enquiries and the drafting notes have been updated.
To select the appropriate set of supplementary CRC enquiries
To raise the appropriate version of the enquiries, the user only needs to know:
- The nature of the target property (whether it is freehold or leasehold, and whether it is subject to occupation leases); and
- Whether their client is a registered CRC participant or not (something which the client can tell them).
To select the appropriate version of the enquiries, use the table and click on the relevant link in the box you have selected.
Type of Property | Buyer is a CRC participant | Buyer is not a CRC participant |
Freehold property with vacant possession | ||
Freehold property subject to occupation leases | ||
Leasehold property with vacant possession | ||
Leasehold property subject to occupation leases | ||
Grant of a new lease | ||