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19.—(1) Within ten years from the relevant date the Council shall take such steps as may be necessary to ensure that all the dwellings included in the transferred property attain the required standard for the purposes of section 61(3) (improvement grants) of the Housing Act 1974.
(2) Without prejudice to the generality of paragraph (1), for a period of ten years from the relevant date the Council shall be responsible for rectifying any major defects due to construction or design which may be found within that period in any dwelling included in the transferred property.
(3) Where the Council is not able to carry out its obligations under paragraphs (1) or (2) at a reasonable expense, the Council shall, with the agreement of the appropriate Borough, either carry out more limited works or demolish the dwelling.
(4) Any question whether for the purpose of paragraph (3) works can be carried out at a reasonable expense shall be decided by the Secretary of State.
(5) Schedule 1 shall have effect for the purposes of this article.
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