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Advising Tenants of a change of Landlord

August 2013
When a landlord, whether of commercial or residential property, sells his freehold (or superior leasehold) interest to a new owner, the tenant needs to be informed straight away. Until a tenant has been given notice of the change of landlord, the tenant will continue paying rent to the former landlord.

A Rent Authority Letter is a letter from the former landlord instructing the tenant to pay rent to the new landlord. We have added a Rent Authority Letter template to our Commercial Property Management document portfolio and to our Residential Landlords document portfolio.

We have also added to each portfolio a template Letter from New Landlord which can be sent as a covering letter with the Rent Authority Letter. It informs the tenant of the new Landlord’s address for service and can include the Landlord’s bank details for the payment of rent.

With residential tenants it is particularly important to provide details of the Landlord’s address for service. Under section 48 of the Landlord and Tenant Act 1987, rent is not treated as lawfully due from a residential tenant unless the Landlord has provided a name and address at which notices must be served.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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