Part 1: Leasehold houses Section 10: Permitted leases: transaction warning conditions
Section 10 introduces warning notices for when a prospective buyer is to be sold a leasehold house. These warn a prospective buyer before they enter into a lease that they are entering into a new lease on a house, and detail the category under which it qualifies as a permitted lease.
	Subsection (1) details that a person may not grant, or enter into an agreement to grant, a permitted lease on or after the day on which the ban comes into force unless the transaction warning conditions are met.
	Subsection (2) sets out the transaction warning conditions as: (a) the warning notice must be issued to the prospective leaseholder(s) at least 7 days before the permitted lease is granted or the agreement is entered into, (b) the prospective leaseholder(s) must provide a notice of receipt of the warning notice to grantor, and (c) a reference to the warning notice and the notice of receipt must be included in, endorsed on, the agreement for lease or in lease.
	Subsection (3) defines a "warning notice" as a notice provided in a specified form and manner and containing (a) sufficient information to identify the house comprised in the lease, (b) a copy of the tribunal certificate, if the permitted lease is one listed in Part 1 of the Schedule (Categories of permitted lease), (c) a statement identifying the category or categories which the lease comes under in Part 2 of the Schedule (Categories of permitted lease) (d) where a lease is permitted under both Part 1 and Part 2 of the Schedule (Categories of permitted lease), information required under both (c) and (d) is must be provided, and e) such further information as may be specified in regulations.
	Subsection (4) defines a "notice of receipt" as a notice in a specified form and manner to be specified in regulations.
	Subsection (5) states that Subsection (1) is not breached where (a) an agreement for lease was already entered into and the transaction warning conditions were already met, and (c) a reference to the warning notice and notice of receipt is included in, or endorsed on, the agreement for lease or the lease.
	Subsection (6) sets out that this Section does not apply to the grant of a permitted lease which falls within paragraph 5 of the Schedule (Categories of permitted lease). Subsection (7) clarifies that that this Section does not affect (a) the validity of a lease granted in breach of Subsection (1) and does not affect the powers of an owner to grant such a lease and (b) any contractual rights of a party to an agreement entered into in breach of Subsection (1). This Subsection is intended to protect the contractual rights of the leaseholders.
	Subsection (8) defines: "grantor", "proposed tenant", "relevant date", "relevant instrument" and "specified" in relation to a lease.
	Subsection (9) sets out that the statutory instrument containing regulations is subject to the negative procedure.