Housing (Sale of Houses) Regulations, 1995.

Statutory Instrument No.188/1995

S.I. No. 188 of 1995.

HOUSING (SALE OF HOUSES) REGULATIONS, 1995.

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 Ministerial Functions) Order, 1995 ( S.I. No. 3 of 1995 ), I, LIZ McMANUS, 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 Houses) Regulations, 1995.

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 10, might reasonably be expected to realise, reduced,

( a ) where improvements have been carried out to the dwelling other than by or on behalf of the authority, by the portion (if any) of such amount that, in the opinion of the authority, is attributable to such improvements; and

( b ) where the site of the dwelling was provided to the authority for a nominal sum, by the excess (if any) of the market value of the site over such sum.

"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 14, 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 with effect from 1st day of May, 1995 under section 90.

4 Sale in fee simple or by way of shared ownership lease

4. A dwelling to which these Regulations apply shall be sold either by the sale of the fee simple or by way of a shared ownership lease and the provisions of section 3 of the Housing (Miscellaneous Provisions) Act, 1992 shall apply in relation to any sale by way of a shared ownership lease on the terms set out in the Transfer Order contained in the Second Schedule to these Regulations provided that the sum of money payable by the purchaser in respect of the grant of the lease shall be not less than 50% of the purchase money.

5 Purchase money for dwelling

5. The purchase money for the dwelling shall be its market value reduced by the amount of the discount under article 6 (hereinafter referred to as "the discount") and the amount of the allowance, if any, under article 8.

6 Discount

6. 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 7, subject to a maximum of thirty per cent of the market value, plus £3,000.

7 Reckonable period of tenancy

7. (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.

8 Allowance for previous purchase

8. 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.

9 Payment of purchase money

9. (1) Where the dwelling is being sold in fee simple, the purchase money for the dwelling shall be paid to the housing authority in full on the completion of the sale.

(2) Where the dwelling is being sold by way of a shared ownership lease, the sum of money payable in respect of the grant of the lease shall be paid to the housing authority in full on the grant of the lease.

(3) Where any portion of the purchase money in accordance with sub-article (1) or (2) 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.

10 Special conditions

10. The sale of the dwelling shall be subject to the special conditions referred to in paragraph (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, or such longer period as may be provided for in a shared ownership lease.

11 Transfer order

11. (1) The transfer order for the sale of a dwelling, shall—

( a ) where the sale is of the fee simple, be in the form set out in the First Schedule, or in a form substantially to the like effect, or,

( b ) where the sale is by way of a shared ownership lease, be in the form set out in the Second Schedule, or in a form substantially to the like effect,

unless in either case the Minister consents to another form.

(2) A housing authority shall, on making a transfer order in respect of a dwelling, furnish a copy of the order to the purchaser.

12 Minimum period of tenancy

12. A housing authority shall not sell a dwelling unless the reckonable period of tenancy, determined by the authority in accordance with article 7 (1), without reference to article 7 (2), is of at least one year's duration.

13 Classes of dwellings which may not be sold

13. 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.

( c ) is a separate and self-contained flat in a premises, divided into two or more flats, which would require arrangements for the upkeep and management of common areas, works or services other than by the purchaser.

14 Sale of other dwellings

14. 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.

15 Revocation

15. The Housing (Sale of Dwellings) Regulations, 1993 ( S.I. No. 267 of 1993 ) are hereby revoked.

FIRST SCHEDULE

Article 11

FORM OF TRANSFER ORDER FOR SALE IN FEE SIMPLE

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

TRANSFER ORDER

of ............................ 1

1. In consideration of the payment of 2

............................................................ ............................................................ ....................................

which is hereby acknowledged,

the 3

............................................................ ............................................................ ....................................

(hereinafter referred to as "the housing authority"), in exercise of the powers conferred on them by section 90 of the Housing Act 1966 , as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992 , HEREBY VEST

on the......................................................day of........................................................19.....................

the dwelling described in paragraph 5 of this Order (hereinafter referred to as "the dwelling") in

4............................................................ ............................................................ .................................

of............................................................ ............................................................ ................................

............................................................ ............................................................ ....................................

(hereinafter referred to as "the purchaser") in fee simple subject to the conditions...

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