“Insolvency of certain persons with an interest in higher-risk and relevant buildings

Part of the debate – in the House of Commons at 6:00 pm on 27 February 2024.

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125A Notifications by insolvency practitioners

(1) This section applies if an insolvency practitioner is appointed in relation to a responsible person for a higher-risk building or a relevant building.

(2) For the purposes of this section, a person is “a responsible person” for a building if—

(a) in the case of a higher-risk building, the person is an accountable person for the building (see section 72 for the meaning of “accountable person” for a higher-risk building);

(b) in the case of a relevant building that is not a higher-risk building, the person would be an accountable person for the building if section 72 were read as applying to such a building (and as if the reference in that section to a residential unit were a reference to a dwelling).

(3) The insolvency practitioner must give the information in subsection (6) (“the required information”) to—

(a) the local authority for the area in which the building for which the person is a responsible person is situated, or (if applicable) each local authority in whose area a building for which the person is a responsible person is situated, and

(b) the fire and rescue authority for the area in which the building for which the person is a responsible person is situated, or (if applicable) each fire and rescue authority in whose area a building for which the person is a responsible person is situated.

(4) If the insolvency practitioner is appointed in relation to an accountable person for a higher-risk building, the practitioner must also give the required information to the regulator.

(5) The required information must be provided within the period of 14 days beginning with the day on which the insolvency practitioner is appointed.

(6) The information is as follows—

(a) the name and address of the person in relation to whom the insolvency practitioner is appointed;

(b) the address of each higher-risk building or relevant building for which the person is a responsible person (but see subsection (7));

(c) an official copy of the register of title and title plan relating to each registered estate or interest the person holds in such a building, if any (but see subsection (7));

(d) the nature of the practitioner’s appointment;

(e) the practitioner’s name, address, telephone number and email address (if any);

(f) so much of the information set out in the table in rule 1.6 of the Insolvency (England and Wales) Rules 2016 (S.I. 2016/1024) as is known to the practitioner.

(7) A local authority or fire and rescue authority need only be notified about buildings, or registered estates or interests in buildings, in their area.

(8) In this section “insolvency practitioner” means—

(a) an administrator;

(b) an administrative receiver;

(c) a receiver appointed by the courts or by a mortgagee;

(d) a liquidator;

(e) a trustee in bankruptcy.

(9) In this section—

“fire and rescue authority” has the meaning given by section 30;

“higher-risk building” has the same meaning as in Part 4 (see section 65);

“local authority” has the meaning given by section 30;

“register of title” means the register kept under section 1 of the Land Registration Act 2002;

“the regulator” has the meaning given by section 2;

“relevant building” has the meaning given by section 117;

“title plan” means a plan based on the Ordnance Survey map and referred to in the register of title.””—(Lee Rowley.)

This new clause amends the Building Safety Act 2022 to impose a new duty on insolvency practitioners to notify the local authority and others in the case of insolvency of certain persons who have repairing obligations relating to certain kinds of buildings.

Brought up, and added to the Bill.