Those landlords in the know, will be aware of the long running court case: Northwood Solihull v Fearn and Others. In short, the essence of the case hinged on the definition of certain lettings documents (Sec 8 notice, and Prescribed Information), whether they were deemed to be ‘executable’ company documents, which determined how they should be signed according to the companies act. Historically, even when the landlord is a Ltd. company, these documents have been signed either by an employee of the letting agent, an individual director of the company that owns the property (often erroneously regarded as ‘the landlord’), or some other individual ‘acting on behalf of the landlord’. Executable company documents – such as deeds etc. – should be signed according to Sec 44 of the 2006 Act, which states that either a single director with a witness or two company directors must sign. This point of law was used by the tenant as a defence to eviction, arguing that the appropriate documents had not been signed correctly. Lower courts found in favour of the tenant. The landlord then took the case to the court of appeal which thankfully has found in favour of the landlord late in January.
The ruling, essentially confirms that lettings documents are not regarded as ‘executable documents’. This allows for a wider group of individuals acting on behalf of the landlord, to sign these documents in much the same way as they have been signed historically by landlords and agents up and down the country. The lettings community have collectively breathed a sigh of relief, because the implications of the case if the appeal had not been won by the landlord are that most notices issued would have been invalidated.
For details of the case see article.
If you would like more information on legislations for landlords, please contact Lifeboat Lettings and one of the team will be able to help with any questions you might have.
