S.I. No. 267/1993 - Housing (Sale of Dwellings) Regulations, 1993.

S.I. No. 267 of 1993.

HOUSING (SALE OF DWELLINGS) REGULATIONS, 1993.

In exercise of the powers conferred on the Minister for the Environment by section 5 of the Housing Act, 1966 (No. 21 of 1966), as amended by section 24 of the Housing (Miscellaneous Provisions) Act, 1992 (No. 18 of 1992) and by section 90 of the Housing Act, 1966 (as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992 ), which powers are delegated to me by the Environment (Delegation of Functions) (No. 2) Order, 1993 ( S.I. No. 128 of 1993 ), I, EMMET STAGG, Minister of State at the Department of the Environment, hereby make the following Regulations:—

1 Citation.

1. These Regulations may be cited as the Housing (Sale of Dwellings) Regulations, 1993.

2 Interpretation.

2. (1) In these Regulations, any reference to—

( a ) an article which is not otherwise identified is a reference to an article of these Regulations;

( b ) a sub-article which is not otherwise identified is a reference to a sub-article of the article in which the reference occurs.

(2) In these Regulations—

"market value" means the amount which, in the opinion of the housing authority who own it, a dwelling, if sold on the open market in its existing state of repair and condition and not subject to the special conditions referred to in article 9, might reasonably be expected to realise, reduced by the portion (if any) of such amount that, in the opinion of the authority, is attributable to any improvements carried out to the dwelling other than by, or on behalf of, the authority;

"the Minister" means the Minister for the Environment;

"section 90" means section 90 of the Housing Act, 1966 , as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992 .

3 Application.

3. These Regulations, other than article 13, shall apply to the sale under section 90 by a housing authority of a dwelling (hereinafter referred to as "the dwelling") to the tenant thereof (hereinafter referred to as "the purchaser") in accordance with a purchase scheme adopted by the authority under section 90.

4 Purchase money for dwelling.

4. The purchase money for the dwelling shall be its market value reduced by the amount of the discount under article 5 (hereinafter referred to as "the discount") and the amount of the allowance, if any, under article 7.

5 Discount.

5. The discount shall be an amount equal to three per cent of the market value in respect of each year of the reckonable period of tenancy determined by the housing authority in accordance with article 6, subject to a minimum of £3,000 and a maximum of thirty per cent of the market value.

6 Reckonable period of tenancy.

6. (1) Subject to sub-article (2), the reckonable period of tenancy shall be the aggregate, immediately prior to the date of the completion of the sale, of the following periods where they are continuous and to such extent as they are not contemporaneous—

( a ) the period of the tenancy of the purchaser or his spouse of the dwelling and of any other dwelling let by a housing authority,

( b ) the period (if any) during which the purchaser or his spouse occupied the dwelling as a purchaser under the terms of a previous sale of the dwelling by the housing authority, and

( c ) where the purchaser or his spouse—

(i) was, for a period of at least one year immediately preceding his appointment as tenant of any dwelling by a housing authority, bona fide resident in such dwelling as a member of the household of the preceding tenant, and

(ii) succeeded to the tenancy of such dwelling,

the period that would be reckonable in respect of such preceding tenant by virtue of this sub-article if such tenant were purchasing the particular dwelling to which the purchaser succeeded him as tenant.

(2) The reckonable period of tenancy determined in accordance with this article shall be rounded up to the next number of complete years where such rounding up would not result in the addition of more than six months to such period.

7 Allowance for previous purchase.

7. An allowance shall be deducted from the market value, after the discount has been allowed, of an amount equal to the amount (if any) of capital paid to the housing authority by the purchaser or his spouse in accordance with the terms of a previous sale of the dwelling to him or his spouse by the authority.

8 Payment of purchase money.

8. (1) The purchase money for the dwelling shall be paid to the housing authority in full on the completion of the sale.

(2) Where any portion of the purchase money is being financed by way of a loan by a housing authority to the purchaser under section 11 of the Housing (Miscellaneous Provisions) Act, 1992 , "paid" in sub-article (1) means the completion by the purchaser of a mortgage contract in respect of such loan.

9 Special conditions.

9. The sale of the dwelling shall be subject to the special conditions referred to in paragraphs (b) and (c) of section 89 of the Housing Act, 1966 , for a period of twenty years from the date of the completion of the sale.

10 Transfer order.

10. The transfer order for the sale of the dwelling shall, unless the dwelling is a separate and self-contained flat in premises divided into two or more such flats, be in the form set out in the Schedule to these Regulations or in a form substantially to the like effect.

11 Minimum period of tenancy.

11. A housing authority shall not sell a dwelling unless the reckonable period of tenancy, determined by the authority in accordance with article 6 (1), without reference to article 6 (2), is of at least one year's duration.

12 Classes of dwellings which may not be sold.

12. A housing authority shall not sell a dwelling which—

( a ) is a caravan, mobile home or structure or thing (whether on wheels or not) that is capable of being moved from one place to another, or

( b ) has been specifically designed for occupation by one or more elderly persons and is so occupied.

13 Sale of other dwellings.

13. A housing authority shall not sell, without the consent of the Minister, a dwelling under sub-paragraph (ii) or (iii) of paragraph (a) or under paragraph (b) of subsection (1) of section 90 unless it is sold at the best price reasonably obtainable on the open market in its existing state of repair and condition.

14 Revocation.

14. (1) Article 85 (1) of, and Part I of the Fourth Schedule to, the Housing Regulations, 1980 ( S.I. No. 296 of 1980 ) are hereby revoked.

(2) Article 5 (4) (d) of the Housing (Miscellaneous Provisions) Regulations, 1988 ( S.I. No. 362 of 1988 ) is hereby revoked.

SCHEDULE

Article 10

FORM OF TRANSFER ORDER

Section 90 of the Housing Act, 1966 (as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992 .

2. No warranty shall apply or be deemed to be implied as to the state of repair or condition or the fitness for human habitation of the dwelling.

3. The following special conditions shall apply to the dwelling for a period of twenty years from the date of vesting of the dwelling:

( a ) the dwelling shall, unless the housing authority otherwise allow, be occupied as a normal place of residence by the purchaser or the purchaser's successor in title or by a member of the purchaser's family or the family of his successor in title;

( b ) the dwelling or any part thereof shall not, without the consent of the housing authority, be mortgaged, charged or alienated otherwise than by devise or operation of law.

4. The following conditions shall apply to the dwelling:⁵

5. Description of dwelling:⁶

Note

( a ) Where the housing authority give or have given consent to a mortgage in respect of a dwelling sold by them under section 90 of the Housing Act, 1966 , as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992 , the authority shall be regarded as having consented to any further or consolidated mortgage effected by the same mortgagor and to the exercise by the mortgagee of his powers under any such mortgage (section 90(9)).

( b ) Where, in relation to a dwelling sold by a housing authority, the authority give consent to a further sale or a mortgagee exercises his powers of sale under a mortgage, the special condition at paragraph 3 (b) of this Order shall, from the date of the sale, no longer apply (section 90 (12) (b) of the Housing Act, 1966 as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992 ).

Dated this 16th day of September, 1993.

EMMET STAGG,

Minister of State at the Department of the Environment.

EXPLANATORY NOTE.

These Regulations govern the sale by housing authorities of tenanted dwellings to tenants. Under section 26 of the Housing (Miscellaneous Provisions) Act, 1992 , the sale of such a dwelling is made in accordance with a tenant purchase scheme adopted by the housing authority. Such a tenant purchase scheme must comply with the provisions of the Regulations which, inter alia, set out the basis for the determination of the purchase price of a dwelling and prescribe certain conditions attaching to a sale. Where a housing authority sell a dwelling other than a tenanted dwelling, the Regulations require the authority to obtain the consent of the Minister to the sale unless it is made at the best price reasonably obtainable.