“ Enforcement by tenants of rights against subsequent purchasers

16 Rights of qualifying tenants against subsequent purchaser.

(1)

This section applies where, at the time when a notice is served on the purchaser under section 11A, 12A, 12B or 12C, he no longer holds the estate or interest that was the subject-matter of the original disposal.

(2)

In the case of a notice under section 11A (right to information as to terms of disposal, &c.) the purchaser shall, within the period for complying with that notice—

(a)

serve notice on the person specified in the notice as the person to whom particulars are to be provided of the name and address of the person to whom he has disposed of that estate or interest (“the subsequent purchaser”), and

(b)

serve on the subsequent purchaser a copy of the notice under section 11A and of the particulars given by him in response to it.

(3)

In the case of a notice under section 12A, 12B or 12C the purchaser shall forthwith—

(a)

forward the notice to the subsequent purchaser, and

(b)

serve on the nominated person notice of the name and address of the subsequent purchaser.

(4)

Once the purchaser serves a notice in accordance with subsection (2)(a) or (3)(b), sections 12A to 14 shall, instead of applying to the purchaser, apply to the subsequent purchaser as if he were the transferee under the original disposal.

(5)

Subsections (1) to (4) have effect, with any necessary modifications, in a case where, instead of disposing of the whole of the estate or interest referred to in subsection (1) to another person, the purchaser has disposed of it in part or in parts to one or more other persons.

In such a case, sections 12A to 14—

(a)

apply to the purchaser in relation to any part of that estate or interest retained by him, and

(b)

in relation to any part of that estate or interest disposed of to any other person, apply to that other person instead as if he were (as respects that part) the transferee under the original disposal.

Termination of rights against purchasers or subsequent purchasers

17 Termination of rights against purchaser or subsequent purchaser.

(1)

If, at any time after a notice has been served under section 11A, 12A, 12B or 12C, the premises affected by the original disposal cease to be premises to which this Part applies, the purchaser may serve a notice on the qualifying tenants of the constituent flats stating—

(a)

that the premises have ceased to be premises to which this Part applies, and

(b)

that any such notice served on him, and anything done in pursuance of it, is to be treated as not having been served or done.

(2)

A landlord who has not served such a notice on all of the qualifying tenants of the constituent flats shall nevertheless be treated as having duly served a notice under subsection (1)—

(a)

if he has served such a notice on not less than 90% of those tenants, or

(b)

where those qualifying tenants number less than ten, if he has served such a notice on all but one of them.

(3)

Where a period of three months beginning with the date of service of a notice under section 12A, 12B or 12C on the purchaser has expired—

(a)

without any binding contract having been entered into between the purchaser and the nominated person, and

(b)

without there having been made any application in connection with the notice to the court or to a leasehold valuation tribunal,

the purchaser may serve on the nominated person a notice stating that the notice, and anything done in pursuance of it, is to be treated as not having been served or done.

(4)

Where any such application as is mentioned in subsection (3)(b) was made within the period of three months referred to in that subsection, but—

(a)

a period of two months beginning with the date of the determination of that application has expired,

(b)

no binding contract has been entered into between the purchaser and the nominated person, and

(c)

no other such application as is mentioned in subsection (3)(b) is pending,

the purchaser may serve on the nominated person a notice stating that any notice served on him under section 12A, 12B or 12C, and anything done in pursuance of any such notice, is to be treated as not having been served or done.

(5)

Where the purchaser serves a notice in accordance with subsection (1), (3) or (4), this Part shall cease to have effect in relation to him in connection with the original disposal.

(6)

Where a purchaser is entitled to serve a notice under subsection (1) but does not do so, this Part shall continue to have effect in relation to him in connection with the original disposal as if the premises in question were still premises to which this Part applies.

(7)

References in this section to the purchaser include a subsequent purchaser to whom sections 12A to 14 apply by virtue of section 16(4) or (5).”.