Part 2: Rogue Landlords and Property Agents in England Chapter 2: Banning Orders Anti-avoidance Section 27: Prohibition on certain disposals
This section makes provision to prevent a person who is subject to a banning order from transferring property to a ‘prohibited person’ whilst the banning order is in force. The definition of prohibited persons is set out in the section and includes family members, business partners and a body corporate which the person subject to the banning order has shares or a financial interest in, of which they or an associated person are a director, secretary or other officer. It also provides that a transfer is prohibited between any bodies corporate that share in common one or more officers. This is designed to prevent persons from getting around a banning order by transferring their property to family members or to a body corporate that they own. However, persons subject to a banning order are able to apply to the First-tier Tribunal for authorisation to make a transfer of property to a prohibited person, where they have a genuine reason for making a transfer.