Directions to housing action trusts: HA 1988 s. 72
Housing action trusts must comply with Secretary of State directions (published). Transactions are not void for breaching a direction; no duty to enquire.
In the exercise of its functions, a housing action trust shall comply with any directions given by the Secretary of State. Directions given by the Secretary of State may be of a general or particular character and may be varied or revoked by subsequent directions. The Secretary of State shall publish any direction given under this section. A transaction between any person and a housing action trust acting in purported exercise of its powers under this Part of this Act shall not be void by reason only that the transaction was carried out in contravention of a direction given under this section; and a person dealing with a housing action trust shall not be concerned to see or enquire whether a direction under this section has been given or complied with.
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
Housing action trusts (HATs) must obey any directions the Secretary of State gives them. These directions can cover all the trust's functions or specific matters, and they can be changed or cancelled later. The Secretary of State must publish every direction.
If a HAT enters into a transaction that goes against a direction, the transaction is still valid. It is not void just because it broke the direction. Anyone dealing with a HAT does not need to check whether a direction exists or has been followed.
When it applies
- The Secretary of State directs a HAT not to sell a particular property, but the HAT sells it anyway; the buyer obtains valid title.
- A HAT is directed to prioritise certain tenants, but it allocates a home to someone else; the allocation is not invalid.
- A developer signs a contract with a HAT for a project; later it emerges the HAT acted contrary to a direction; the contract remains binding.
- The Secretary of State publishes a direction varying an earlier one; the HAT must follow the new direction.
What this section does not say
- This provision does not specify what happens if a HAT disobeys a direction (e.g., enforcement or penalties).
- It does not define what counts as a 'direction' (e.g., whether it must be in writing).
- It does not apply to other bodies such as local authorities or private landlords.
- It does not give a third party the right to sue if a transaction was made in breach of a direction.
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This page reproduces the text of HA 1988 s. 72 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.