The New Property Law Act

On 1 January 2008 the Property Law Act 2007 came into force, replacing the 1952 Property Law Act and several other related Acts, including a number of old English ones going back as far as 1257.

It has been described as the largest single change to property law in the past 55 years and is the culmination of a project that took over 16 years. Not everything in the Act is new; many parts of it repeat or codify the existing law. The following briefly highlights some of the changes that have been introduced.

Landlord's Consent: Landlords Beware!
If a tenant asks a landlord for permission to transfer or sublease premises to a third party, or to change the permitted use of the premises, the landlord must not unreasonably withhold consent. The landlord must respond in writing within a reasonable time. If consent is given subject to the conditions or is withheld, the landlord must give written reasons for their decision, if asked to do so by the tenant.

A range of parties (not just the tenant) affected by the decision may claim damages from a landlord if they suffer loss as a result of the landlord unreasonably delaying or withholding the landlord's consent.

Insurance Protection for Tenants:
If the premises are damaged by an insured risk (eg, fire, flood, explosion) the landlord and their insurers cannot require the tenant to pay for the repairs - even if the damage was caused by the tenant's negligence.

Distraint - Now Abolished:
The Distress and Replevin Act 1908 enabled a landlord to enter the premises and seize certain chattels of the tenant, if the rent was in arrears. This self-help remedy has been abolished.

Sale and Purchase - Return of Deposit:
A purchaser of land now has a statutory right to apply to a court for the return of the purchaser's deposit. The surrounding circumstances must be such that a court would not order the purchaser to perform the contract and also that the purchaser has no right to cancel the contract.

An example could be where there is a defect in the property that the purchaser was not aware of until after signing the contract and paying the deposit. The court is also given the power to cancel the contract and declare that the purchaser has a lien on the land to secure payment of the refund.

Conclusion:
The new Act affects many facets of the law relating to property. It includes leases, sales and purchases, mortgages, access to land and special powers of the court.

Chances are, if you are dealing with land in any way, the new act will affect what you are doing. With such a major law change, it is more important than ever to obtain proper advice at the outset of any property transaction.


This article was prepared by Cavell Leitch Law for general information purposes only an dimportant exceptions and other relevant factors may not have been included. If understanding the legal area covered by this article as it affects your specific circumstances is important to you then please contact us for a proper opinion.