Section 3 Notice

What is a Section 3 Notice?

When you purchase a freehold property, you are legally required to inform tenants of the assignment of landlord’s interest as per the Landlord and Tenant Act 1985. This is called a Section 3 Notice and it must be served within two months following the transfer of ownership and contain the new landlord’s name and address. The new landlord must serve notice to tenants regardless of whether the previous landlord notified tenants.

What happens if this notice isn’t served?

If the new landlord fails to notify tenants, it is considered a summary offence which can lead to a criminal conviction and fine of up to £2500. Furthermore, during the period in which the Section 3 Notice has not been served, the previous owner of the property will be either jointly or severally liable for any breach in covenant, condition or agreement under the tenancy. It is therefore in the outgoing landlord’s interest to ensure that the purchaser serves notice.

All you’ll have to do is add the relevant information regarding the assignment of landlord’s interest to the template and then send it to all of your tenants. We’ll also include instructions on how to prepare the notice when we email you.

As with any legal document, it is very important to ensure that the Section 3 Notice is completed accurately in order to avoid any negative ramifications. If you are at all unsure about serving the Section 3 Notice to tenants yourself, it is advisable to seek legal advice from a qualified solicitor.