Duty to complete and consequences - HA 1988 s. 104
After dispute resolved, landlord must grant freehold, applicant must grant leases. Disposal cost may be paid by instalments. Duties enforceable by injunction.
Where the applicant has served on the landlord a notice under section 103(1) above, then, as soon as any dispute as to any matters stated in that notice has been determined and, where appropriate, any determination has been made under section 103(7) above— the landlord shall make to the applicant a grant of the property included in the acquisition for an estate in fee simple absolute, but subject to any rights to be retained by the landlord; and the applicant shall grant to the landlord leases of any flats of which he is required to grant leases by regulations under section 100 above. The terms of any grant or lease under subsection (1) above shall comply with such requirements as may be prescribed. In such cases as may be prescribed and where the applicant has been notified as mentioned in section 99(7) above, a disposal cost may be paid by instalments of such amounts (which may include interest) and payable at such times and over such period as may be prescribed. The duties imposed by the preceding provisions of this section are enforceable by injunction. Notwithstanding anything in section 141 of the Law of Property Act 1925 (rent and benefit of lessee’s covenants to run with the reversion) any rent or other sum which— arises under a tenancy of any property included in the acquisition, and falls due before the date of the grant under subsection (1) above, shall continue to be recoverable by the landlord to the exclusion of the applicant and of any other person in whom the reversion on the tenancy may become vested. Without prejudice to the application of Part IV of the Local Government and Housing Act 1989 (revenue accounts and capital finance of local authorities) to the price received by the landlord on the disposal (as mentioned in subsection (1)(a) above) of the property included in the acquisition, where there is a disposal cost attributable to that property any payments made by the landlord in respect of that cost shall be expenditure for capital purposes for the purposes of that Part.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
After the applicant serves a notice under section 103 and any disputes about the notice are resolved, the landlord must transfer the freehold (fee simple absolute) of the property to the applicant. The applicant must then grant leases of any flats as required by regulations.
The landlord may allow the applicant to pay the disposal cost in instalments, with interest, as prescribed. These duties are enforceable by injunction.
Any rent or other sum due under a tenancy before the freehold transfer remains the landlord's money, not the applicant's. Payments made by the landlord in respect of the disposal cost are treated as capital expenditure under the Local Government and Housing Act 1989.
When it applies
- A tenant who has served a notice of intention to proceed and resolved a dispute about the property's price now demands the landlord transfer the freehold.
- A landlord refuses to grant the freehold after the dispute is settled, and the tenant seeks a court order to enforce the duty.
- An applicant must grant a lease of a flat within the property to the landlord as required by regulations under section 100.
- The landlord claims rent that fell due before the date of the freehold transfer, and the applicant disputes who gets that rent.
- The parties disagree on whether the disposal cost can be paid in instalments, and the prescribed regulations apply.
What this section does not say
- This section does not set the price or the terms of the acquisition; those are determined by other provisions and regulations.
- It does not cover the initial notice to proceed or the consultation process; those are in sections 102 and 103.
- It does not deal with consent for subsequent disposals of the property; that is in section 105.
- It does not define who is eligible to apply for the freehold; that is under Part IV generally.
That's the law. Now let's settle your problem.
Say what is happening. A neutral mediator hears your side and the other party's, and walks you both to a written agreement. In the advanced settings you can ask for the decision to be reasoned on the Acts of Parliament that apply in England and Wales.
Or open a session directly and invite the other party.
We copy this text from the official publisher and re-check it against that source on every page load, but we cannot guarantee it is complete, current or free of error, and we accept no liability for any reliance on it. An amendment can take effect before a consolidation catches up. The publisher's own copy is linked below; where the two differ, it is the official one that counts.
This page reproduces the text of HA 1988 s. 104 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.