Part VIIIS Premiums, etc.

85 Prohibition of premiums on grant, etc. of Part VII contracts.S

(1)The provisions of this section apply in relation to any dwelling-house if

(a)under Part VII of this Act, a rent is registered for that dwelling-house in the register kept in pursuance of section 67 above; and

(b)in a case where the approval, reduction or increase of the rent by the [F1First-tier Tribunal] is limited to rent payable in respect of a particular period, that period has not expired.

(2)Subject to subsection (3) below, any person who, as a condition of the grant, renewal, continuance or assignation of rights under a Part VII contract, requires the payment of any premium shall be guilty of an offence under this section.

(3)Nothing in subsection (2) above shall prevent a person from requiring—

(a)that there shall be paid so much of any outgoings discharged by a grantor or assignor as is referable to any period after the grant or assignation takes effect; or

(b)that there shall be paid a reasonable amount in respect of goodwill of a business, trade, or profession, where the goodwill is transferred to a grantee or assignee in connection with the grant or assignation or accrues to him in consequence thereof.

(4)A person guilty of an offence under this section shall be liable to a fine not exceeding level 3 on the standard scale.

(5)The court by which a person is convicted of an offence under this section may order the amount of the premium, or so much of it as cannot lawfully be required under this section, to be repaid to the person by whom it was paid.

Textual Amendments