Housing Defects Act 1984

Payment into court

11 (1) Where under paragraph 8(1) above the interest acquired is to be discharged from any charge falling within that sub-paragraph, and in accordance with paragraph 9(1) above a person is or may be entitled in respect of the charge to receive the whole or part of the purchase price, then if—

(a) for any reason difficulty arises in ascertaining how much is payable in respect of the charge ; or

(b) for any reason mentioned in sub-paragraph (2) below difficulty arises in making a payment in respect of the charge ;

the authority may pay into court on account of the purchase price the amount, if known, of the payment to be made in respect of the charge or, if that amount is not known, the whole of the purchase price or such less amount as the authority think right in order to provide for that payment.

(2) The reasons referred to in sub-paragraph (1)(b) above are—

(a) that a person who is or may be entitled to receive payment cannot be found or ascertained ;

(b) that any such person refuses or fails to make out a title, or to accept payment and give a proper discharge, or to take any steps reasonably required of him to enable the sum payable to be ascertained and paid ; or

(c) that a tender of the sum payable cannot, by reason of complications in the entitlement to payment or the want of two or more trustees or for other reasons, be effected, or not without incurring or involving unreasonable cost or delay.

(3) Without prejudice to sub-paragraph (1)(a) above, the purchase price shall be paid by the authority into court if before the execution of a conveyance under an agreement entered into in pursuance of section 6 of this Act written notice is given to them—

(a) that the vendor or a person entitled to a charge on the interest of which the vendor disposes under such an agreement so requires for the purpose of protecting the rights of persons so entitled, or for reasons related to the bankruptcy or winding up of the vendor ; or

(b) that steps have been taken to enforce any charge on the interest of which the vendor disposes under such an agreement by the bringing of proceedings in any court, or by the appointment of a receiver, or otherwise ;

and where payment is to be made into court by reason only of a notice under this sub-paragraph, and notice is given with reference to proceedings in a court specified in the notice other than the county court, payment shall be made into the court so specified.