7(1)The landlord shall not be concerned with the application of the amount payable to the tenant by way of compensation under an order for possession, but (subject to any statutory requirements as to payment of capital money arising under a settlement or [F1trust of land] and to any order under paragraph 2(4) above for payment into court) the written receipt of the tenant shall be a complete discharge for the amount payable.E+W
(2)The landlord shall be entitled to deduct from the amount so payable to the tenant—
(a)the amount of any sum payable by way of rent or recoverable as rent in respect of the house and premises up to the termination of the tenancy; and
(b)the amount of any other sums due and payable by the tenant to the landlord under or in respect of the tenancy or any agreement collateral thereto.
(3)Where the tenancy is [F2subject to a trust of land], and compensation is paid in respect of it in accordance with section 17 or 18 of this Act (whether possession is obtained under that section or without any application for possession), the sum received shall be dealt with as if it were proceeds of sale arising under the trust.
Textual Amendments
F1Words in Sch. 2 para. 7(1) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 10(c)(i) (with ss. 24(2), 25(4)(5)); S.I. 1996/2974, art. 2
F2Words in Sch. 2 para. 7(3) substituted (1.1.1997) by 1996 c. 47, s. 25(1), Sch. 3 para. 10(c)(ii) (with ss. 24(2), 25(4)(5)); S.I. 1996/2974, art. 2