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Renting Homes: The Final Report - Law Commission

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2.6 Secondly, we do not recommend the conversion of agricultural occupancies<br />

protected by the Rent (Agriculture) Act 1976, the agricultural equivalent of the<br />

Rent Act 1977. In addition, we have not attempted to include the “agricultural<br />

occupancies” regime set out in the Housing Act 1988, part 1, chapter 3 (the<br />

equivalent of the general assured tenancy regime). <strong>The</strong> status of these<br />

occupancies is particularly complex as their tenure scheme is linked with the<br />

regulation of agricultural wages. We recommend that the current law should be<br />

the subject of a special review by a body with particular expertise in this area.<br />

WRITTEN STATEMENT OF THE CONTRACT<br />

2.7 Landlords are required to provide the occupier (known in the Bill as the “contractholder”)<br />

with a written statement of the contract. Model contracts are prescribed,<br />

which will be readily and cheaply available. Parties can complete them simply by<br />

filling in the front page. Assuming that the terms relating to key matters are in<br />

plain intelligible language, the model contracts will not be subject to the unfair<br />

terms regulations. 4<br />

2.8 Landlords are not required to use the relevant model contract. If they choose not<br />

to, the fundamental terms and any supplementary terms which incorporate<br />

supplementary provisions without modification will still not be subject to the unfair<br />

terms regulations. 5<br />

2.9 Landlords who do not provide the written statement are subject to proportionate<br />

(non-criminal) sanctions: financial and procedural. 6<br />

TERMS OF THE CONTRACT<br />

2.10 Occupation contracts contain four classes of term:<br />

(1) terms relating to key matters;<br />

(2) fundamental terms;<br />

(3) supplementary terms; and<br />

(4) additional terms.<br />

Terms relating to key matters<br />

2.11 <strong>The</strong> key matters are those which go to the heart of the occupation contract. <strong>The</strong>y<br />

include the name and address of the property and the amount of the rent. As they<br />

are unique to each contract, they cannot be statutorily prescribed, though the Bill<br />

defines the key matters that must appear in the contract. 7<br />

4 This term is defined in para 1.36 above.<br />

5<br />

Cls 13 and 23(1) and the Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999<br />

No 2083).<br />

6 <strong>The</strong>se are discussed in detail at paras 3.55 and 3.56. We do not think use of the criminal<br />

law is appropriate in this context. <strong>The</strong> criminal sanctions in the current law are, in any<br />

event, rarely used in practice.<br />

7 Cl 27.<br />

30

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