News

Why you need to notify tenants when the Freehold Owner changes

If the freehold reversion to a commercial property is sold, what are the implications on the new owner if the tenant has not been informed of the change of ownership?

There is no statutory obligation to inform the tenants of a change in landlord in connection with commercial property.  The obligation to inform tenants usually arises out of the terms of the contract between the seller and the buyer.  The contract often provides for the provision and sending of rent authority letters by the seller to the tenants following completion of the sale.

Generally, until a tenant has received notice that the former landlord is no longer entitled to receive the rents and profits under the lease, any claim, notice, request, demand or other instrument which the tenant serves on the former landlord will be deemed served on the new landlord.  Therefore, although there is no obligation to inform the tenants of a commercial property that the reversion has changed hands, the new landlord will want to ensure that this is done so that the tenant is obliged to serve any notices etc. on the new landlord going forward.   As the rent authority letter will then constitute a notice under the Landlord and Tenant Act 1927, it should be served in accordance with section 23(1) of the Act.  


Posted on 01/09/2019 by Ortolan

Get in Touch

If you would like to know more about Ortolan Legal and how we can help you reduce your ongoing recruitment costs, get in touch!

Email us now

   Or call 020 3743 0600

I have worked with Ortolan Legal since 2010 and used their services extensively. They have provided corporate and commercial legal advice and we have also drawn on their capability in the areas of employment law, dispute resolution and property law. What makes them so different is their ability consistently to deliver commercially focussed and high quality advice at a price point which simply cannot be matched by other law firms. They aim to strip out unnecessary overhead costs, concentrate on the quality of their core service and pass on these cost savings to their clients. It works.

Charlie Blackburn, Entrepreneur and co-founder of Brighttalk
See All

Meet the Team

  • Nick Benson Nick Benson I qualified as a commercial and corporate solicitor…
  • Liz Delgado Liz Delgado I qualified as a solicitor in 1995 after studying…
  • Carrie Beaumont Carrie Beaumont I qualified as an Employment specialist in 2008. I…