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Commonhold and Leasehold Reform Act 2002

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This is the original version (as it was originally enacted).

58Development rights

This sectionnoteType=Explanatory Notes has no associated

(1)In this Part—

  • “the developer” means a person who makes an application under section 2, and

  • “development business” has the meaning given by Schedule 4.

(2)A commonhold community statement may confer rights on the developer which are designed—

(a)to permit him to undertake development business, or

(b)to facilitate his undertaking of development business.

(3)Provision made by a commonhold community statement in reliance on subsection (2) may include provision—

(a)requiring the commonhold association or a unit-holder to co-operate with the developer for a specified purpose connected with development business;

(b)making the exercise of a right conferred by virtue of subsection (2) subject to terms and conditions specified in or to be determined in accordance with the commonhold community statement;

(c)making provision about the effect of breach of a requirement by virtue of paragraph (a) or a term or condition imposed by virtue of paragraph (b);

(d)disapplying section 41(2) and (3).

(4)Subsection (2) is subject—

(a)to regulations under section 32, and

(b)in the case of development business of the kind referred to in paragraph 7 of Schedule 4, to the memorandum and articles of association of the commonhold association.

(5)Regulations may make provision regulating or restricting the exercise of rights conferred by virtue of subsection (2).

(6)Where a right is conferred on a developer by virtue of subsection (2), if he sends to the Registrar a notice surrendering the right—

(a)the Registrar shall arrange for the notice to be kept in his custody and referred to in the register,

(b)the right shall cease to be exercisable from the time when the notice is registered under paragraph (a), and

(c)the Registrar shall inform the commonhold association as soon as is reasonably practicable.

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