Section 18 of the Landlord and Tenant Act of 1987
The Landlord and Tenant Act of 1987 was a piece of British legislation covering various issues in rental law. It set rules for landlords looking to sell residential rental properties, establishing, among other things, that renters have the "right of first refusal." This means that if the landlord wants to sell, the tenants must have a chance to buy the home before offering it to anyone else.
Other People Are Reading
-
Disposal
-
Nothing in the 1987 act requires a landlord to sell to his tenants or gives the tenants the right to force the landlord to sell, according to the British Leasehold Advisory Service. If the landlord does wish to dispose of his interest in the property -- by selling the title, for example -- he must inform the tenants of his price and sell to them if they can meet it. The act provides for exceptions, such as when the landlord sells only part of the property or one company sells the rental building to an affiliated business.
Qualifications
-
The Landlord and Tenant Act does not always apply to the sale of rental property. To be covered, a building must have more than one apartment, at least half the building space must be residential (not counting stairs, corridors and other common areas) and more than half the apartments must be occupied by qualified tenants. Some renters, such as someone receiving an apartment in return for employment, do not qualify. The act also does not apply if the landlord is a government housing authority, a charitable trust or if the landlord has lived in the building for more than a year.
-
Section 18
-
Section 18 deals with individuals looking to purchase the property from the landlord. This section states that if the landlord's disposal appears to be covered by the act, the prospective purchaser can notify the tenants about his intent to buy and the price he's offering. If the purchaser notifies 60 percent of the tenants and less than half of those notified reply or more than half tell him they're not interested in bidding, the disposal can proceed as if the act did not apply.
Purchasing
-
If the landlord is selling on the open market and more than 50 percent of the qualified tenants want to buy, he must agree to sell to the person, agency or representative they select. The tenants must meet the landlord's price. The landlord has no obligation to negotiate or lower the price although he cannot legally offer it to anyone else at a lower price in the next 12 months. If the tenants withdraw their offer, the landlord is free to sell to someone else but at the same price.
-
References
Resources
- Photo Credit Liverpool Flats image by Peter Jarvis from Fotolia.com
