Renting Homes: The Final Report - Law Commission

6.51 The Bill also contains provisions dealing with the transfer of a fixed-term standard
contract on the death of the contract-holder. 76 These are discussed in Part 7.
FORM AND EFFECT OF TRANSFER
Form
6.52 Under current law, a tenancy can only be assigned by deed, even where the
original tenancy did not have to be granted by deed. 77 If no deed is used, a
contract to assign a tenancy may be enforceable in equity, but only if it complies
with the requirements of the Law of Property (Miscellaneous Provisions) Act
1989, section 2. It must be in writing, signed by both parties and containing all the
terms of the contract (subject to the possible effect of equitable estoppel). We do
not regard the requirement for a deed as appropriate in the context of residential
renting.
6.53 The Bill provides that any transfer by a contract-holder or a joint contract-holder
must be made in writing, 78 signed by each of the parties to the transfer. 79 If the
contract requires the consent of the landlord, the landlord must be a party to the
contract. 80 These rules do not apply to transfers in the course of the
administration of the contract-holder’s estate. 81
Effect
6.54 If transfer of an occupation contract is made in compliance with the terms of the
contract and the formalities set out in the preceding paragraphs, on the date of
the transfer: 82
(1) the transferee becomes entitled to all the rights and subject to all the
obligations of the contract-holder under the contract; and
(2) the contract-holder ceases to be entitled to any rights or subject to any
obligations under the contract. 83
76 Cls 133 and 136.
77 Law of Property Act 1925, s 54(2) allows the creation, but not the assignment, by parol of
certain short leases. See Crago v Julian [1992] 1 WLR 372 on whether the Law of Property
Act 1925, s 53(1)(a) can enable assignment by writing without a deed.
78
Electronic writing may be used: cl 215(4). The appropriate authorities are given power to
prescribe the form to be used.
79
Cl 137(2). Cl 140(2) specifically disapplies the Law of Property Act 1925, s 52 from
occupation contracts.
80 Cl 137(3).
81 Cl 137(6).
82 The date of the transfer is the day agreed by the transferor and the transferee as the day
on which the transfer takes effect: cl 138(5).
83 Cl 138(1).
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