Part 4 - Regulation of leasehold Section 67: Leasehold sales information requests
Under existing arrangements landlords have discretion on the length of time they can take to provide information about a leasehold property that a leaseholder requests in anticipation of selling their property ("sales information"). There are also no restrictions on the charge the landlords may levy to provide this information. Nor are they obliged to obtain information from other parties to meet the leaseholder’s demands. There is also no enforcement mechanism for instances where sales information is not provided.
	Section 67 provides for a leaseholder to give a sales information request to the landlord in anticipation of selling their property.
	Section 67 sets out that Sections 30K, 30L, 30M, 30N and 30P are to be inserted into the LTA 1985.
	New Section 30K inserted in the LTA 1985 provides for a leaseholder to give a sales information request to the landlord in anticipation of selling their property.
	New Section 30K (1) details that the leaseholder may give the sales information request to the landlord.
	New Section 30K (2) requires a "sales information request" to be set out in a specified form and given in a specified manner. It must also detail (a) that the leaseholder is contemplating selling their property, (b) the sales information requested from the landlord and (c) any other specified information.
	New Section 30K (3) details that the leaseholder may request sales information only if it is information that is specified in regulations made by the appropriate authority.
	New Section 30K (4) confirms that the information specified by the appropriate authority under subsection (3) must reasonably be expected to help a prospective purchaser in deciding whether to purchase the property.
	New Section 30K (5) confers powers on the appropriate authority to provide that a sales information request may not be given until a particular period has come to an end or until another condition is met.
	New Section 30K(6) details that regulations under this Section: (a) are to be made by statutory instrument; (b) may make provision generally or for specific cases; (c) may make different provision for different purposes; and (d) may include supplementary, incidental, transitional or saving provision.
	New Section 30K (7) makes it clear that any statutory instrument containing regulations under this Section is subject to the negative procedure.
	New Section 30L inserted into the LTA 1985 requires a landlord who has received a sales information request to provide the requested information to the leaseholder and, if necessary, to request any information from other parties/individuals.
	New Section 30L (1) details that a landlord who has received a sales information request from the leaseholder must provide the leaseholder with any of the information requested that is within the landlord’s possession.
	New Section 30L (2) sets out that a landlord must request information from another person if (a) the information has been requested in a sales information request, (b) the landlord does not have the information and (c) the landlord believes the other person has the information.
	New Section 30L (3) sets out that the person who the landlord has requested information from must provide the information that they hold.
	New Section 30L (4) requires those who have been asked to provide information, to make a further request to whoever they believe possesses the information, if they do not have it themselves. It requires a person ("A") to request information from another person ("B") if (a) the information has been requested from A in a request under subsection (2) or as an "onward request", (b) A does not hold the information and (c) A believes that B has the information. "Onward request" means a request made under subsection (4).
	New Section 30L (5) requires B to provide A with any information they hold.
	New Section 30L (6) sets out that any person required to provide information under this Section must provide the information within a specified period.
	New Section 30L (7) sets out that any person who (a) has received a sales information request or onward request and (b) does not provide the information before the end of the specified period, because they do not hold the information, must provide a "negative response confirmation" to the person who made the request.
	New Section 30L (8) details that a negative response confirmation is a document in a specified form and given in a specified manner that sets out (a) that the individual does not hold the information, (b) actions taken by the individual to determine whether or not they hold the information, (c) onward requests they have made and to whom, (d) an explanation of why they were unable to obtain the information, including details of any negative response confirmations they have received and (e) any other specified information.
	New Section 30L (9) details that where a person is required to provide a negative response confirmation, they must provide it before the end of a specified period, which begins the day after the period in subsection (7)(b) ends.
	New Section 30L (10) confers powers on the appropriate authority to set out in regulations the detail of the process for making onward requests for information. The regulations may (a) provide that an onward request may not be made until the end of a particular period or until another condition is met; (b) provide for how an onward request can be made; (c) provide for the period within which an onward request must be made; (d) provide for circumstances when a duty to comply with a sales information request or onward request does not apply; (e) provide for how information requested in a sales information or onward request is to be given; and (f) make provision for circumstances when the period specified in subsection (6), (7) or (9) may be extended.
	New Section 30L(11) details that regulations under this Section (a) are to be made by statutory instrument; (b) may make provision generally or for specific cases; (c) may make different provision for different purposes; and (d) may include supplementary, incidental, transitional or saving provision.
	New Section 30L (12) makes it clear that any statutory instrument containing regulations under this Section is subject to the negative procedure.
	New Section 30M inserted into the LTA 1985 regulates the charges for the provision of sales information and sets out when charges can be made.
	New Section 30M (1) details that subject to regulations under subsection (2), a person ("P") may charge another person for (a) determining whether information requested in a sales information request or onward request is held by P and (b) providing or obtaining information under Section 30L.
	New Section 30M (2) confers powers on the appropriate authority by regulations to (a) limit the amount to be charged under subsection (1) and (b) prohibit a charge under subsection (1) in specified circumstances or unless specified requirements are met.
	New Section 30M (3) details that where a landlord charges the leaseholder under subsection (1) the charge is (a) an administration charge and (b) is not to be treated as a service charge.
	New Section 30M (4) details that for the purposes of this part, the costs of (a) determining whether information requested in a sales information request or onward request is in a person’s possession or (b) providing or obtaining information under Section 30L are not to be regarded as relevant costs and should not be taken in to account when determining the amount of any variable service charge payable by a leaseholder.
	New Section 30M (5) details that regulations under this Section (a) are to be made by statutory instrument; (b) may make provision generally or for a specific case; (c) may make different provision for different purposes; and (d) may include supplementary, incidental, transitional or saving provision.
	New Section 30M (6) makes it clear that any statutory instrument containing regulations under this Section is subject to the negative procedure.
	New Section 30N inserted into the LTA 1985 sets out the enforcement provisions for failing to comply with requirements relating to sales information requests (new Section 30L) and charges for the provision of information (new Section 30M).
	New Section 30N (1) sets out that an application can be made to the appropriate tribunal by a person who has made a sales information request or an onward request ("C") on the ground that another person ("D") failed to comply with a requirement under new Section 30L or 30M.
	New Section 30N (2) sets out orders that the appropriate tribunal can make. It can make one or more of the following orders: (a) an order that D comply with the requirement of providing the requested information before the end of a specified period; (b) an order that D pay damages to C for the failure to comply; (c) if D charged C in excess of a limit specified in regulations under Section 30M (2)(a), an order that D repay the amount charged in excess of the limit to C; and (d) if D charged C in breach of regulations under Section 30M(2)(b), an order that D repay the amount charged to C.
	New Section 30N (3) details that damages under subsection (2)(b) must not exceed £5,000.
	New Section 30N (4) confers powers on the appropriate authority to amend the amount of damages in subsection (3) by regulations if it considers expedient to do so to reflect changes in the value of money.
	New Section 30N (5) details that regulations under this Section (a) are to be made by statutory instrument; (b) may make provision generally or for a specific case; (c) may make different provision for different purposes; and (d) may include supplementary, incidental, transitional or saving provision.
	New Section 30N (6) makes it clear that any statutory instrument containing regulations under this Section is subject to the negative procedure.
	New Section 30P (1) sets out the definitions for Sections 30K to 30N of "information", "landlord", "long lease", "onward request", "sales information request" and "specified".
	New Section 30P (2) sets out that a reference in Section 30K to 30N to purchasing a long lease is a reference to becoming a tenant under the lease for consideration, whether by grant, assignment or otherwise.