Renting Homes: The Final Report - Law Commission

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PART 11 OTHER RIGHTS AND OBLIGATIONS 11.1 In this final Part we deal briefly with a number of other matters in the Bill, not so far discussed. OBTAINING A CONTRACT BY MAKING A FALSE STATEMENT 11.2 It is a fundamental provision of all occupation contracts that if a landlord is induced to make a contract by means of a relevant false statement, the contractholder is to be treated as in breach of the contract. Thus the landlord may take possession proceedings against him. 1 A false statement is relevant if it is made knowingly or recklessly by the contract-holder or another person acting at the contract-holder’s instigation. 2 11.3 The effect of making this a fundamental term in the contract is that the occupier is clearly put on notice that such deception may lead to loss of the home, rather than any other consequences that might flow from the more general law on deception or fraud. 3 An equivalent provision has been available to landlords for some years and, while not widely used, has on occasion been very effective. PROTECTION OF THE RIGHT TO OCCUPY 4 11.4 A contract-holder has the right to occupy the premises to which the occupation contract relates. (This is the equivalent of what has traditionally been known, in landlord and tenant law, as the right to quiet enjoyment. The right to quiet enjoyment is currently implied into leases but not licences. We consider that the phrase “quiet enjoyment” is potentially misleading to contract-holders, so we do not use it in the Bill, especially as not all occupation contracts will be tenancies.) The Bill protects that right by prohibiting a landlord from doing anything that interferes with that right, or where an omission to do an act interferes with it, omitting to do that act. 5 1 Cl 64(1). 2 Cl 64(2). 3 The existence of the statutory provision does not mean that use of the common law on fraud or deception is thereby prevented. There may be cases where the common law can be used. It is our view that experience of the law in practice suggests that the statutory provision we include here is an effective way of ensuring the occupier is aware of the consequences of any deception or fraud. 4 This is discussed in Part 8 of Renting Homes (2003) Law Com No 284. 5 Cl 65(1). The landlord also interferes with the contract-holder’s right if a person who claims under the landlord or has an interest in the premises that is superior to the landlord’s does a lawful act (or lawfully omits to do an act) that interferes with the contract-holder’s right: cl 65(4). 144
11.5 Where a landlord reasonably exercises rights under the occupation contract, for example to gain access to the premises to assess damage or undertake repairs, the Bill provides that they do not interfere with the contract-holder’s right. 6 Nor does the landlord interfere with the contract-holder’s right merely because of failure to comply with the landlord’s repairing obligations. 7 LANDLORD’S NAME AND ADDRESS 8 11.6 A fundamental term in all occupation contracts is that the landlord must, within two weeks of the effective date, give the contract-holder written notice of an address in England and Wales to which the contract-holder may send documents that are intended for the landlord. Where the landlord uses an agent, the agent’s name and address must also be provided within two weeks of when the landlord starts to manage the premises through the agent. Any changes in the landlord’s or contract-holder’s identity are also to be notified. 9 If the landlord fails to comply with these obligations, they are liable to pay compensation to the contractholder. 10 The landlord under a periodic standard contract may not make a possession claim on the landlord’s notice ground at any time when they are in breach of these obligations. 11 JOINT AND SEVERAL LIABILITY 11.7 Wherever there are two or more joint contract-holders, the Bill specifies that liability for the performance of the contract is joint and several. 12 This means that each contract-holder is liable for the totality of the obligations under the contract, even if one or more of a number of joint contract-holders leaves the contract. A similar principle applies where there are joint landlords. 13 6 Cl 65(2). 7 Cl 65(3). 8 This is discussed in Part 8 of Renting Homes (2003) Law Com No 284. 9 Cl 68. 10 Cl 69. Compensation is assessed on the same basis as when a landlord fails to provide the occupier with a written copy of the agreement: cl 34. Discussed above, at para 3.55. 11 Cl 177(3). 12 Cl 71. 13 Cl 72. 145
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The Law Commission (LAW COM No 297)
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THE LAW COMMISSION RENTING HOMES: T
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Obtaining a contract by deception 3
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Fundamental provisions applying to
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Deception 93 Persons with “home r
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Limits 128 Access 129 Parties to pr
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THE LAW COMMISSION RENTING HOMES: T
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(4) such other aspects of Housing L
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Flexibility 1.17 Finally, and most
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1.26 At present, many landlords do
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1.37 There is also power to define
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1.47 We have heard it suggested tha
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CHANGES IN THE LEGISLATIVE CONTEXT
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1.70 The position would be substant
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(1) the creation of model contracts
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PART 2 THE SCHEME IN OUTLINE 2.1 In
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Fundamental terms 2.12 Fundamental
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2.24 While consent must not be unre
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Obtaining a contract by deception 2
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2.45 We are aware that the current
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2.57 Nevertheless, there have to be
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PART 3 OCCUPATION CONTRACTS INTRODU
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3.9 A number of points about the de
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3.12 To prevent abuse of this rule,
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(b) Where a local housing authority
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Community landlords 3.23 The starti
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(9) Contracts relating to accommoda
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(3) supplementary terms; 84 and (4)
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The detail of these fundamental pro
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Landlords’ own contracts 3.54 The
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Variation 3.58 In addition the Bill
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3.70 Where a fixed term standard co
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PART 4 TERMINATION OF OCCUPATION CO
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4.11 However, reaching this result
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4.19 Similarly, on the death of a j
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Other provisions Death of the landl
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4.38 We noted in Renting Homes that
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TERMINATION BY THE LANDLORD 4.44 Ou
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4.53 In accordance with the “use
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4.62 If the landlord has given a no
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4.70 For social landlords and other
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(2) ground B applies where the prem
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Secure and periodic standard contra
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(3) the joint contract-holder occup
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4.102 At the end of the four week p
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The possession notice 5.6 The court
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Estate management grounds 5.14 Wher
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Renting Homes: The Final Report - Law Commission

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