When a property changes hands, it’s important for both landlords and tenants to understand their rights and responsibilities. One key legal requirement is a piece of legislation known as a Section 3 Notice. Defined under the Landlord and Tenant Act 1985, a Section 3 Notice ensures transparency and fairness in the landlord-tenant relationship.
In this article, we will explain in detail what a Section 3 Notice is, how it is applied, and what this means for both landlords and tenants. Whether you’re a tenant trying to determine your rights or a landlord considering selling or buying a property with tenants in it, read our Section 3 Notice guide for more information.
A Section 3 Notice is an important piece of legislation that every landlord and tenant should be aware of. A Section 3 Notice, as part of The Landlord and Tenant Act 1985, is a legal requirement that compels a new landlord to inform an existing tenant of their identity after a change in property ownership. So, if a new landlord purchases a rented property (or properties) in which the tenants remain, they must let these tenants know, in writing, of the change, tell them who they are, and inform them that they will be their landlord moving forward.
The Section 3 Notice must be served to a tenant no later than the next day on which rent is payable under the tenancy (the next day rent is due), unless that falls within two months of the change, in which case, the deadline is the end of that period of two months.
The notice is required to include the new landlord’s name and address. If the new landlord is a group of trustees, then a collective description of the trustees can be provided, e.g., “the trustees of XYZ Trust”. The point of the notice is to make the tenant aware of the change in landlord, so they know who to contact about the property and how to contact them.
Example scenario
As discussed, the new landlord is required to serve the Section 3 Notice in writing to the tenants in situ, and this must include their name and address. This must be served by the deadline outlined above. If the landlord fails to serve the notice without a “reasonable excuse” , they commit a summary offence and could be liable to a fine. The previous landlord may also remain liable for breaches of the tenancy until proper notice is served, under “joint and several liability” rules, depending on timing. Therefore, it’s a good idea for the outgoing landlord to ensure the buyer issues the notice, or issues it on their behalf, in time to protect themselves from residual liability.
A Section 3 Notice upholds tenant rights and protections. It provides them with clarity on who is legally responsible for managing the property, handling repairs, rent collection, and so on. If no notice is given, it’s unfair to the tenant, as they may not know who to contact or hold accountable. If there is an issue, it will delay this getting sorted if they don’t have the correct contact details. Therefore, it is important for the new landlord to provide the tenant with this notice. If you are a tenant and this notice was not served within the deadline, you could have grounds to take legal action.
Issuing a Section 3 Notice is a straightforward process. The new landlord must provide their name and address to the tenant in writing by the next day when rent is due or within two months of the ownership transfer, whichever is later. This can be delivered directly to them, or it can be left at the property. A Section 3 Notice may be required when a landlord is selling the property, transferring it to a new owner, or the property is being inherite
The Landlord and Tenant Act 1985 is a piece of legislation in the UK that outlines and governs the legal relationship between a landlord and a tenant in residential tenancies. The act is in place to protect both parties, ensuring the relationship is fair and details both parties’ roles and responsibilities. It covers a range of landlord and tenant obligations, including repair responsibilities, service charges, and provision of information, to name just a few.
One of the critical components of the Landlord and Tenant Act 1985 is the Section 3 Notice, which is a legal obligation for landlords and ensures transparency in the landlord-tenant relationship. Tenants have the right to know the identity of their landlord, and if this is requested, the details must be provided to them.
Whether you are a landlord or a tenant, navigating these legal obligations can be daunting. At Emperor Home, our experienced property services team can:
If you’re unsure whether a Section 3 Notice needs to be served, or whether your tenancy is compliant with all relevant statutes, get in touch. Let us manage the legal, administrative, and practical details so you can stay focused on your property investment or living situation.
Are you a landlord looking for help managing your properties with peace of mind your tenancies are correctly managed and legally compliant? Contact Emperor Home today at 0151 380 0200 or via email at info@emperorhome.co.uk and let our Liverpool-based team guide you through.ou
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