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(1) In section 138 of Housing Act 1985 (c.68) (duty of landlord to convey freehold or grant lease), after the subsection (2C) inserted by section 166 of this Act, insert—
(2D) Subsection (1) also has effect subject to section 138A(2) (disapplication of subsection (1) where demolition notice is served).
(2) After section 138 of that Act insert—
138A Effect of demolition notice before completion
- (1) This section applies where—
- (a) a secure tenant has claimed to exercise the right to buy, but
- (b) before the landlord has made to the tenant such a grant as is required by section 138(1), a demolition notice is served on the tenant under paragraph 13 of Schedule 5.
- (2) In such a case—
- (a) the tenant's claim ceases to be effective as from the time when the demolition notice comes into force, and
- (b) section 138(1) shall not apply to the landlord, in connection with the tenant's claim, at any time after the demolition notice comes into force.
- (3) If—
- (a) the tenant's, claim has been established before the demolition notice comes into force, and
- (b) within the period of three months beginning with the date of its coming into force, the tenant serves on the landlord a written notice claiming an amount of compensation under subsection (4),
- (4) Compensation under this subsection is compensation in respect of expenditure reasonably incurred by the tenant in respect of legal and other fees, and other professional costs and expenses, payable in connection with the exercise of his right to buy.
- (5) A notice under subsection (3) must be accompanied by receipts or other documents showing that the tenant incurred the expenditure in question
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(3) The amendments made by this section do not apply in any case where the tenant's notice under section 122 of that Act (notice claiming to exercise right to buy) was served before the day on which this section comes into force.'.—[Paul Clark.]
§ Brought up, read the First and Second time, and added to the Bill.