HC Deb 22 July 1996 vol 282 cc105-6

8A.—(1) This section applies where the landlord is obliged to proceed and the offer notice was not one to which section 5B applied (sale by auction).

(2) The landlord shall, within the period of one month beginning with the date of service of the notice of nomination, send to the nominated person a form of contract for the acquisition of the protected interest on the terms specified in the landlord's offer notice.

(3) If he fails to do so, the following provisions of this Part apply as if he had given notice under section 9B (notice of withdrawal by landlord) at the end of that period.

(4) If the landlord complies with subsection (2), the nominated person shall. within the period of two months beginning with the date on which it is sent or such longer period beginning with that date as may be agreed between the landlord and that person, either—

  1. (a) serve notice on the landlord indicating an intention no longer to proceed with the acquisition of the protected interest, or
  2. (b) offer an exchange of contracts, that is to say, sign the contract and send it to the landlord, together with the requisite deposit. In this subsection "the requisite deposit" means a deposit of an amount determined by or under the contract or an amount equal to 10 per cent. of the consideration, whichever is the less.

(5) If the nominated person—

  1. (a) serves notice in pursuance of paragraph (a) of subsection (4), or
  2. (b) fails to offer an exchange of contracts within the period specified in that subsection, the following provisions of this Part apply as if he had given notice under section 9A (withdrawal by nominated person) at the same time as that notice or, as the case may be, at the end of that period.

(6) If the nominated person offers an exchange of contracts within the period specified in subsection (4), but the landlord fails to complete the exchange within the period of seven days beginning with the day on which he received that person's contract, the following provisions of this Part apply as if the landlord had given notice under section 9B (withdrawal by landlord) at the end of that period.