Q: Why do I need to obtain a Section 3 report?
A: The report guarantees the person approaching you, who is to be the landlord is also the owner. It will also confirm if the property is in joint names or not.
Q: What information does it provide?
A: As well as confirming the legal owner of the property it will confirm any outstanding mortgages over the property. It can provide the property description for your Private Residential Tenancy Agreements, including a boundary plan to confirm the extent of the land being let or a plan to confirm what car parking spaces are included. It will also confirm whether there are any RSEO's are registered on the property.
Q: How often should I have a report carried out?
A: You should have a report carried out at the start of every new tenancy. Even if you have acted for the landlord for some time, their circumstances may have changed and not informed you.
Q: My landlord has provided me with a copy of their title deed, is this sufficient or will a letter signed by them confirming they are the owners suffice?
A: The title deeds only disclose that at some point that they have owned the property. It is not the most up to date record and ownership could have changed hands at any time. A signed letter will not be considered that you have carried out all reasonable steps as per your obligations under the Code.
Q: Can I charge for this report?
A: Yes, this is an expense that you can charge your landlord. You cannot charge the tenant for this
Q: What happens if I don't obtain this report?
A: Unless you can guarantee that the landlord owns the property as at the date the tenancy agreement started, you are not satisfying Section 3 of the Code of Practice.
Q: Will the First Tier Tribunal expect me to obtain this information?
A: Yes, the FTT are there to enforce the Code of Practice. If your tenancy agreement and/or accompanying documentation submitted to the FTT do not relate to the correct, legal ownership the documentation is likely to be rejected. You may then also possibly receive a Letting Agent Enforcement Order.