PART 3PROVISIONS APPLYING TO ALL OCCUPATION CONTRACTS

CHAPTER 8DEALING

Rights to deal with occupation contract

57Permissible forms of dealing

1

The contract-holder under an occupation contract may not deal with the occupation contract, the dwelling or any part of the dwelling except—

a

in a way permitted by the contract, or

b

in accordance with a family property order (see section 251).

2

A joint contract-holder may not deal with his or her rights and obligations under the occupation contract (or with the occupation contract, the dwelling or any part of the dwelling), except—

a

in a way permitted by the contract, or

b

in accordance with a family property order.

3

If the contract-holder does anything in breach of subsection (1), or a joint contract-holder does anything in breach of subsection (2)—

a

the transaction is not binding on the landlord, and

b

the contract-holder or joint contract-holder is in breach of the contract (despite the transaction not being binding on the landlord).

4

Dealing” includes—

a

creating a tenancy, or creating a licence which confers the right to occupy the dwelling;

b

transferring;

c

mortgaging or otherwise charging.

5

This section is a fundamental provision which is incorporated as a term of all occupation contracts.