Commentary on Sections Part 2 - Occupation contracts and Landlords Chapter 1 - Occupation Contracts Section 7 – Tenancies and licences that are occupation contracts
31.Section 7 sets out the basic proposition which underpins the Act, and which is considered above in relation to Part 1; most tenancies and licences under which people rent their homes will be occupation contracts.
32.The effect of subsections (1) to (3) is that a tenancy or licence is an occupation contract if it allows at least one individual over the age of 18 to occupy a dwelling as a home, and someone is paying rent (or ‘other consideration’; for example, doing something equivalent to paying rent, such as providing a service to the landlord) in exchange for that individual’s right to live in the dwelling.
33.Schedule 2 sets out a number of exceptions and qualifications to the basic proposition in section 7.