Homes Bill

House of Commons

Session 2000-2001
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Arrangement of Clauses (Contents)

Homes Bill

A
B I L L
TO
Make provision for imposing requirements in relation to the marketing of residential properties in England and Wales; to make further provision about the functions of local housing authorities relating to homelessness and the allocation of housing accommodation; and for connected purposes.
BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

PART I

SELLERS' PACKS

Preliminary

Meaning of "residential property" and other expressions.     1. - (1) This section defines or explains expressions used in this Part in connection with the requirements relating to sellers' packs which are imposed, in relation to the marketing of residential properties, by section 3 or 4 (duties applicable to sellers and persons acting as an estate agent).

    (2) "Residential property" means premises in England and Wales consisting of a single dwelling-house, including any land intended to be occupied and enjoyed together with that dwelling-house.

    (3) "Dwelling-house" means a building or part of a building occupied or intended to be occupied as a separate dwelling (and includes one that is being or is to be constructed).

    (4) A residential property is put on the market when the fact that it is or may become available for sale is first made public in England and Wales by the seller or a person acting on his behalf.

    (5) A residential property which has been put on the market is to be regarded as remaining on the market until it is taken off the market or sold.

    (6) A fact is made public when it is advertised or otherwise communicated (in whatever form and by whatever means) to the public or to a section of the public.

    (7) In relation to a residential property-

"sale" means a disposal, or agreement to dispose, by way of sale of a freehold interest or a long leasehold interest in the property;

"seller" means a person contemplating disposing of such an interest; and

"seller's pack" means a collection of documents relating to the property.

Responsibility for marketing a property which is on the market.     2. - (1) This section identifies who is, for the purposes of this Part, responsible for marketing a residential property which is being or has been put on the market in England and Wales and when that responsibility arises and ceases.

    (2) Only the seller or a person acting as estate agent for the seller may become responsible for marketing the property.

    (3) A person acting as estate agent becomes responsible for marketing the property when action is taken by him or on his behalf which-

(a) puts the property on the market; or

(b) makes public the fact that the property is on the market.

    (4) The responsibility of a person acting as estate agent ceases when both of the following conditions are satisfied, namely-

(a) his contract with the seller is terminated (whether by the withdrawal of his instructions or otherwise); and

(b) he has ceased to take any action which makes public the fact that the property is on the market.

    (5) Subject to subsection (6), the seller becomes responsible for marketing the property when action is taken by him or on his behalf which-

(a) puts the property on the market; or

(b) makes public the fact that the property is on the market.

    (6) The seller does not become responsible under subsection (5) by virtue of any action taken by or on behalf of a person acting as his estate agent (and it is immaterial that the action may have been requested or authorised by the seller).

    (7) Any responsibility of the seller ceases when both of the following conditions are satisfied, namely-

(a) there is at least one person acting as his estate agent who is responsible for marketing the property; and

(b) the seller has ceased to take any action which makes public the fact that the property is on the market.

    (8) Any responsibility arising under this section also ceases when the property is taken off the market or sold.

Requirements relating to sellers' packs

Duties of responsible person where a property is on the market.     3. - (1) This section applies to any person who becomes responsible for marketing a residential property ("the responsible person") from the time he becomes responsible until the time his responsibility ceases.

    (2) The responsible person shall have in his possession, at all times during that period, a seller's pack for the property which complies with the requirements of any regulations under section 7.

    (3) Where a potential buyer makes a request to the responsible person for-

(a) a copy of the seller's pack for the property,

(b) a copy of (or of an extract from) a document contained in that pack,

     the responsible person shall (unless the request is withdrawn) provide the potential buyer, within the permitted period, with a copy of the seller's pack as it stands when the request is made or, as the case may be, a copy of the relevant document (or extract) as it appears in the seller's pack at that time.

    (4) A sum not exceeding the reasonable cost of providing a copy requested under subsection (3) may be charged by the responsible person.

    (5) In subsection (3) "permitted period" means the period of 14 days beginning with-

(a) the day on which the request is made; or

(b) if a charge for providing the copy is payable in advance but not paid until after the request is made, the day on which payment is received.

    (6) A person does not comply with subsection (3) by providing a copy in electronic form unless the person making the request consents to receiving it in that form.

    (7) Where the responsible person provides a potential buyer with, or allows a potential buyer to inspect, anything purporting to be-

(a) a copy of the seller's pack for the property as it stands at any time; or

(b) a copy of (or of an extract from) a document contained in the seller's pack as it stands at any time,

     he shall ensure that it is a copy of the seller's pack as it stands at the time in question or, as the case may be, a copy of the relevant document (or extract) as it appears in the seller's pack at that time.

    (8) A person to whom this section applies who fails, without reasonable excuse, to comply with any requirement of this section is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

    (9) Subsection (8) has effect subject to paragraph 1(3) of Schedule 1 (reduced maximum fine where fixed penalty is not paid).

Other duties of person acting as estate agent.     4. - (1) This section applies to a person acting as estate agent for the seller of a residential property where-

(a) the property is not on the market; or

(b) the property is on the market but the person so acting is not a person responsible for marketing the property.

    (2) A person to whom this section applies shall have in his possession, when any qualifying action is taken by him or on his behalf, a copy of the seller's pack for the property which complies with the requirements of any regulations under section 7 which apply at the time that action is taken.

    (3) In subsection (2) "qualifying action" means action which-

(a) communicates to any person in England and Wales the fact that the property is or may become available for sale; but

(b) does not put the property on the market or make public the fact that the property is on the market.

    (4) Where a person to whom this section applies provides a potential buyer with, or allows a potential buyer to inspect, anything purporting to be-

(a) a copy of the seller's pack for the property as it stands at any time; or

(b) a copy of (or of an extract from) a document contained in that pack at any time,

     he shall ensure that it is a copy of the seller's pack as it stands at the time in question or, as the case may be, a copy of the relevant document (or extract) as it appears in the seller's pack at that time.

    (5) A person who fails, without reasonable excuse, to comply with any requirement of this section is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

    (6) Subsection (5) has effect subject to paragraph 1(3) of Schedule 1 (reduced maximum fine where fixed penalty not paid).

Exceptions.     5. - (1) The requirements in sections 3 and 4 do not apply in relation to a residential property at any time when it is not available for sale with vacant possession.

    (2) A residential property shall be presumed for the purposes of sections 3 and 4 to be available with vacant possession at any material time unless the contrary appears from the manner in which the property is being marketed at that time.

    (3) The Secretary of State may by regulations provide for exceptions from any requirement in section 3 or 4 in such cases and circumstances, and to such extent, as may be specified in the regulations.

Defences.     6. - (1) It is a defence for a person charged with an offence under section 3 or 4 to show that he exercised all due diligence to avoid the commission of the offence.

    (2) Where the seller of a residential property is charged with an offence consisting of a failure to comply with section 3(2), it is a defence for him to show-

(a) that there was at the time of the alleged failure a person who was responsible for marketing the property under section 2(3); and

(b) that he believed, on reasonable grounds, that the responsible person had a copy of the seller's pack for the property in his possession which complied with the requirements of any regulations under section 7 which applied at that time.

    (3) It is a defence for a person charged with an offence consisting of a failure to comply with section 3(3) to show that at the time the request was made he believed, on reasonable grounds, that the person making the request-

(a) was unlikely to have sufficient means to buy the property in question;

(b) was not genuinely interested in buying a property of a general description which applies to the property; or

(c) was not a person to whom the seller was likely to be prepared to sell the property.

    (4) Where the seller of a residential property is charged with an offence consisting of a failure to comply with section 3(3) in relation to a request from a potential purchaser, it is a defence for the seller to show that-

(a) when the request was made he was not in possession of a copy of the seller's pack which complied with the requirements of regulations under section 7 which applied at that time;

(b) there was at that time a person responsible for marketing the property under section 2(3);

(c) he believed, on reasonable grounds, that the other responsible person had a copy of the seller's pack for the property in his possession which complied with those requirements; and

(d) he took reasonable steps to inform the potential buyer that any request should be made to the other responsible person.

© Parliamentary copyright 2000
Prepared 13 December 2000

Homes Bill

	A B I L L TO Make provision for imposing requirements in relation to the marketing of residential properties in England and Wales; to make further provision about the functions of local housing authorities relating to homelessness and the allocation of housing accommodation; and for connected purposes. BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
	PART I
	SELLERS' PACKS
	Preliminary
Meaning of "residential property" and other expressions.	1. - (1) This section defines or explains expressions used in this Part in connection with the requirements relating to sellers' packs which are imposed, in relation to the marketing of residential properties, by section 3 or 4 (duties applicable to sellers and persons acting as an estate agent).
	(2) "Residential property" means premises in England and Wales consisting of a single dwelling-house, including any land intended to be occupied and enjoyed together with that dwelling-house.
	(3) "Dwelling-house" means a building or part of a building occupied or intended to be occupied as a separate dwelling (and includes one that is being or is to be constructed).
	(4) A residential property is put on the market when the fact that it is or may become available for sale is first made public in England and Wales by the seller or a person acting on his behalf.
	(5) A residential property which has been put on the market is to be regarded as remaining on the market until it is taken off the market or sold.
	(6) A fact is made public when it is advertised or otherwise communicated (in whatever form and by whatever means) to the public or to a section of the public.
	(7) In relation to a residential property-
	"sale" means a disposal, or agreement to dispose, by way of sale of a freehold interest or a long leasehold interest in the property;
	"seller" means a person contemplating disposing of such an interest; and
	"seller's pack" means a collection of documents relating to the property.
Responsibility for marketing a property which is on the market.	2. - (1) This section identifies who is, for the purposes of this Part, responsible for marketing a residential property which is being or has been put on the market in England and Wales and when that responsibility arises and ceases.
	(2) Only the seller or a person acting as estate agent for the seller may become responsible for marketing the property.
	(3) A person acting as estate agent becomes responsible for marketing the property when action is taken by him or on his behalf which-
	(a) puts the property on the market; or
	(b) makes public the fact that the property is on the market.
	(4) The responsibility of a person acting as estate agent ceases when both of the following conditions are satisfied, namely-
	(a) his contract with the seller is terminated (whether by the withdrawal of his instructions or otherwise); and
	(b) he has ceased to take any action which makes public the fact that the property is on the market.
	(5) Subject to subsection (6), the seller becomes responsible for marketing the property when action is taken by him or on his behalf which-
	(a) puts the property on the market; or
	(b) makes public the fact that the property is on the market.
	(6) The seller does not become responsible under subsection (5) by virtue of any action taken by or on behalf of a person acting as his estate agent (and it is immaterial that the action may have been requested or authorised by the seller).
	(7) Any responsibility of the seller ceases when both of the following conditions are satisfied, namely-
	(a) there is at least one person acting as his estate agent who is responsible for marketing the property; and
	(b) the seller has ceased to take any action which makes public the fact that the property is on the market.
	(8) Any responsibility arising under this section also ceases when the property is taken off the market or sold.
	Requirements relating to sellers' packs
Duties of responsible person where a property is on the market.	3. - (1) This section applies to any person who becomes responsible for marketing a residential property ("the responsible person") from the time he becomes responsible until the time his responsibility ceases.
	(2) The responsible person shall have in his possession, at all times during that period, a seller's pack for the property which complies with the requirements of any regulations under section 7.
	(3) Where a potential buyer makes a request to the responsible person for-
	(a) a copy of the seller's pack for the property,
	(b) a copy of (or of an extract from) a document contained in that pack,
	the responsible person shall (unless the request is withdrawn) provide the potential buyer, within the permitted period, with a copy of the seller's pack as it stands when the request is made or, as the case may be, a copy of the relevant document (or extract) as it appears in the seller's pack at that time.
	(4) A sum not exceeding the reasonable cost of providing a copy requested under subsection (3) may be charged by the responsible person.
	(5) In subsection (3) "permitted period" means the period of 14 days beginning with-
	(a) the day on which the request is made; or
	(b) if a charge for providing the copy is payable in advance but not paid until after the request is made, the day on which payment is received.
	(6) A person does not comply with subsection (3) by providing a copy in electronic form unless the person making the request consents to receiving it in that form.
	(7) Where the responsible person provides a potential buyer with, or allows a potential buyer to inspect, anything purporting to be-
	(a) a copy of the seller's pack for the property as it stands at any time; or
	(b) a copy of (or of an extract from) a document contained in the seller's pack as it stands at any time,
	he shall ensure that it is a copy of the seller's pack as it stands at the time in question or, as the case may be, a copy of the relevant document (or extract) as it appears in the seller's pack at that time.
	(8) A person to whom this section applies who fails, without reasonable excuse, to comply with any requirement of this section is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
	(9) Subsection (8) has effect subject to paragraph 1(3) of Schedule 1 (reduced maximum fine where fixed penalty is not paid).
Other duties of person acting as estate agent.	4. - (1) This section applies to a person acting as estate agent for the seller of a residential property where-
	(a) the property is not on the market; or
	(b) the property is on the market but the person so acting is not a person responsible for marketing the property.
	(2) A person to whom this section applies shall have in his possession, when any qualifying action is taken by him or on his behalf, a copy of the seller's pack for the property which complies with the requirements of any regulations under section 7 which apply at the time that action is taken.
	(3) In subsection (2) "qualifying action" means action which-
	(a) communicates to any person in England and Wales the fact that the property is or may become available for sale; but
	(b) does not put the property on the market or make public the fact that the property is on the market.
	(4) Where a person to whom this section applies provides a potential buyer with, or allows a potential buyer to inspect, anything purporting to be-
	(a) a copy of the seller's pack for the property as it stands at any time; or
	(b) a copy of (or of an extract from) a document contained in that pack at any time,
	he shall ensure that it is a copy of the seller's pack as it stands at the time in question or, as the case may be, a copy of the relevant document (or extract) as it appears in the seller's pack at that time.
	(5) A person who fails, without reasonable excuse, to comply with any requirement of this section is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
	(6) Subsection (5) has effect subject to paragraph 1(3) of Schedule 1 (reduced maximum fine where fixed penalty not paid).
Exceptions.	5. - (1) The requirements in sections 3 and 4 do not apply in relation to a residential property at any time when it is not available for sale with vacant possession.
	(2) A residential property shall be presumed for the purposes of sections 3 and 4 to be available with vacant possession at any material time unless the contrary appears from the manner in which the property is being marketed at that time.
	(3) The Secretary of State may by regulations provide for exceptions from any requirement in section 3 or 4 in such cases and circumstances, and to such extent, as may be specified in the regulations.
Defences.	6. - (1) It is a defence for a person charged with an offence under section 3 or 4 to show that he exercised all due diligence to avoid the commission of the offence.
	(2) Where the seller of a residential property is charged with an offence consisting of a failure to comply with section 3(2), it is a defence for him to show-
	(a) that there was at the time of the alleged failure a person who was responsible for marketing the property under section 2(3); and
	(b) that he believed, on reasonable grounds, that the responsible person had a copy of the seller's pack for the property in his possession which complied with the requirements of any regulations under section 7 which applied at that time.
	(3) It is a defence for a person charged with an offence consisting of a failure to comply with section 3(3) to show that at the time the request was made he believed, on reasonable grounds, that the person making the request-
	(a) was unlikely to have sufficient means to buy the property in question;
	(b) was not genuinely interested in buying a property of a general description which applies to the property; or
	(c) was not a person to whom the seller was likely to be prepared to sell the property.
	(4) Where the seller of a residential property is charged with an offence consisting of a failure to comply with section 3(3) in relation to a request from a potential purchaser, it is a defence for the seller to show that-
	(a) when the request was made he was not in possession of a copy of the seller's pack which complied with the requirements of regulations under section 7 which applied at that time;
	(b) there was at that time a person responsible for marketing the property under section 2(3);
	(c) he believed, on reasonable grounds, that the other responsible person had a copy of the seller's pack for the property in his possession which complied with those requirements; and
	(d) he took reasonable steps to inform the potential buyer that any request should be made to the other responsible person.