Part 7 - Rentcharges Section 113: Regulation of remedies for arrears of rentcharges
Section 113 provides remedies for arrears of rentcharges, where the rentcharge remains unpaid for a period of 40 days. Section 113 (1) details that the Law of Property Act 1925 is to be amended with this new Section.
	Section 113 (2) inserts Sections 120A, 120B, 120C, 120D and 122A into the Law of Property Act 1925 ("the 1925 Act").
	New Section 120A defines various terms used throughout this Section. New Section 120A (1) details that for new Sections 120B to 122, a rentcharge is "regulated" if it is a rentcharge that could not be created under Section 2 of the 1977 Act; it relates to historic rentcharges.
	New Section 120A (2) defines, for the purposes of Sections 120B and 120C, "charged land" means the land which is, or the land the income of which is, charged by the rentcharge. It also set outs out the meaning of "demand for payment" as meaning a notice under Section 120(1)(a) demanding payment of regulated rentcharge arrears, and "landowner" is defined as, in relation to a sum that is charged by rentcharge, meaning the person who holds the charged land.
	New Section 120A (2) also sets out the meaning of "regulated rentcharge arrears" means a sum charged by a regulated rentcharge that is unpaid after the time appointed for its payment. This new Section also sets out the definition of "rent owner" as, in relation to a sum that is charged by rentcharge, meaning the person who hold title to the rentcharge.
	New Section 120B (1) details that no action to recover or require payment of regulated rentcharge arrears may be taken unless (a) a notice has been served by the rent owner to the landowner demanding payment of the rentcharge arrears; (b) the demand complies with the requirements of new Section 120B(2); (c) the demand for payment either (i) complies with the requirements of new Section 120B(3) or (ii) does not need to comply with those requirements and (d) the period of 30 days, which begins on the day that the demand is served, has ended.
	New Section 120B (2) details that the demand for payment must set out (a) the name of the rent owner; (b) the address of the rent owner, with an address in England and Wales at which notices may be served on the rent owner by the landowner, if the rent owner address is not in England and Wales; (c) the amount of regulated rentcharge arrears; (d) how the amount has been calculated; (e) how to pay the amount.
	New Section 120B (3) details that the demand for payment must set out or be served with (a) a copy of the instrument that created the regulated rentcharge; (b) proof that the rent owner holds the title to the regulated rentcharge.
	New Section 120B (4) details that the demand for payment complies with new Section 120B(3)(b) if (a) the demand includes a copy of the registered title, where the rent owner’s title to the registered charge is registered at Land Registry or (b) the demand includes copies of instruments by which title to the rent charge has passed to the rent owner, where the title to the regulated charge is not registered at Land Registry.
	New Section 120B (5) details that a demand for payment served by a rent owner on a landowner in relation to a regulated rentcharge does not need to comply with new Section 120B(3) if: (a) a previous demand for payment served by the rent owner on the landowner in relation to the rentcharge complied with new Section 120B(3); and (b) there has been no material change in the matters of new Section 120B(3) since the previous demand was served.
	New Section 120B (6) details that no sum is payable by the landowner for the preparation or service of a demand for payment, which includes getting or preparing documents or copies to comply with new Section 120B(3).
	New Section 120B (7) sets out that new Section 120B applies to the action to recover or compel payment of rentcharge arrears whether the action is authorised by the Act or is otherwise available, including bringing proceedings.
	New Section 120C inserts into the 1925 Act relates to additional requirements for the service of notice under Section 120B. New Section 120C(1) details that new Section 120C applies if (a) notice served under new Section 120B demanding the payment of rentcharge arrears is served in compliance with the requirements of Section 196 (3) or (4), but (b) the address the notice is left at or sent to, in compliance with those requirements is not the charged land.
	New Section 120C(2) details that the notice is sufficiently served only if, in addition to complying with existing requirements under Section 196(3) or (4) of the 1925 Act, (a) it is left for the landowner on the charged land or (b) it is sent by post in a registered letter addressed to the landowner, by name, at the charged land, with the letter not being returned undelivered by the postal operator; and the serving of the notice will be deemed to be made at the time the registered letter would be delivered.
	New Section 120D inserts into the 1925 Act new administrative charge provisions relating to regulated rentcharge arrears. New Section 120D (1) confers powers on the Secretary of State to set out in regulations a limit of the amounts payable by landowners, directly or indirectly, in relation to the action of recovering or requiring payment of regulated rentcharge arrears.
	New Section 120D (2) details that regulations under this Section may provide that no amount is to be payable by landowners in respect of particular descriptions of action to recover or compel payment of regulated rentcharge arrears. New Section 120D (3) details that regulations under this Section may make (a) different provisions for different cases; (b) transitional or saving provision. New Section 120D (4) details that regulations are made by statutory instrument and (5) details that the negative resolution procedure is to be used.
	Section 113(3) inserts new subsection(1A) into Section 121 of the 1925 Act. New subsection(1A) details that where a sum is charge as a regulated rentcharge, the rent owner does not have any remedies for recovering or compelling payment of the sum on and after 27 November 2023 (the date of the first reading of the Act).
	Section 113(4) inserts new subsection(1A) into Section 122 of the 1925 Act. New subsection(1A) details that on and after27 November 2023 (the date of the first reading of the Act), such a rentcharge or another annual sum may not be granted, reserved, charged or created out of or on another rentcharge if it is a regulated rentcharge.
	Section 113(5) details that the amendments made by subsections (1) to (4) are to be applied to both rentcharge arrears that have arisen before and after these changes come into force.
	Section 113(6) inserts Section 122A into the 1925 Act. New Section 122A details that an instrument creating a rentcharge or a contract or any other arrangement is of no effect to the extent that it makes provision that is contrary to (a) Section 120B, 120C, 121 (1A) or 122 (1A) or (b) regulations under Section 120D.