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(1)A public sector authority shall, where a person is to acquire a relevant interest in a defective dwelling on a disposal by the authority, give him notice in writing before the time of the disposal—
(a)specifying the qualifying defect, and
(b)stating that he will not be eligible for assistance under this part in respect of the dwelling.
(2)A public sector authority shall, before they convey a relevant interest in a defective dwelling in pursuance of a contract to a person on whom a notice under subsection (1) has not been served, give him notice in writing—
(a)specifying the qualifying defect,
(b)stating, where the time of disposal of the interest falls after the cut-off date, that he will not be eligible for assistance under this Part, and
(c)stating the effect of subsection (3)
(3)A person on whom a notice under subsection (2) is served—
(a)is not obliged to complete the conveyance before the expiry of the period of six months beginning with the service of that notice on him, and
(b)may within that period withdraw from the transaction by notice in writing to the authority to that effect;
and upon such a notice of withdrawal being given to the authority the parties to the contract are discharged from any obligations in connection with it and any deposit paid shall be repaid.
(4)Where a public sector authority are required to serve a notice under section 124 (landlord’s response to notice claiming to exercise right to buy) in respect of a defective dwelling, the notice under subsection (1) shall be served with that notice.
(5)A notice under subsection (1) or (2) shall, (except in the case of a notice under subsection (1) which is served in accordance with subsection (4)), be served at the earliest date at which it is reasonably practicable to do so.
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