Handling contract transfers can involve several important steps, paperwork, and legal considerations. This guide aims to help you navigate the most common questions and processes related to contract transfers efficiently and in line with best practices.
1. What Do I Do with the Paperwork and TMI?
Once a contract transfer is approved, it’s crucial to follow the correct steps to ensure everything is recorded and filed properly:
- Follow the TMI Guide: Use the guide to trigger an automatic notification to Rent Accounts so they can make the necessary changes.
- Scan and Store Documents: All paperwork, including investigation forms and the RHW10 transfer form, should be scanned and stored in Documotive for audit purposes. Be sure to update Documotive to reflect the new contract holder’s name.
- Distribute Paperwork: Send any additional documents to the relevant teams or sections for further action (e.g., Council tax, direct debit adjustments).
2. Can We Refuse a Contract Transfer Request?
Yes, but only under certain conditions. Under S84 and Schedule 6 of the RHW Act, we can refuse a contract transfer if the request does not meet legal requirements or if specific issues apply:
- Rent Arrears: If the contract holder has outstanding arrears, the request should be refused unless a repayment arrangement is agreed upon.
- Breach of Contract: If the contract holder has violated any terms of the contract, the transfer should be denied until the issue is resolved.
- Court Proceedings: If legal proceedings have begun against the contract holder, or if notice of intent to issue proceedings has been served, the transfer request should be denied.
- Property Suitability: If the proposed contract holder does not require the size of the property, or if the property is designated for certain categories (e.g., disability accommodation), the request can be refused.
- Specialist Support: If the property provides specialist support and no one with the required needs will remain in the property, the transfer can be denied.
Important: If a transfer is refused, inform both parties in writing, clearly stating the reasons. Should the transfer proceed without approval, it will be considered an unauthorized transfer and a breach of contract.
3. What Do I Do Once an Application Has Been Received?
When a contract transfer application is submitted, follow these steps:
- Create a TMI: As per the TMI Guide, record the transfer in the system.
- Request Additional Information: The CHO has 14 days to request more information from the contract holder if needed. After 14 days, no further information can be requested.
- Decision Deadline: A decision to approve or refuse the transfer must be provided in writing within one month of the application. If no decision is made within this time, the contract holder can assume the transfer is approved.
During this process, complete the Contract Transfer Investigation form to assess the suitability of the proposed contract holder. Consider factors like:
- Is the property size appropriate?
- Does the new contract holder require existing adaptations?
- Are there any current contract breaches or court orders?
- Has the contract holder agreed to a repayment arrangement for arrears?
You should also conduct a pre-contract assessment to identify any support needs and evaluate the proposed contract holder’s financial viability.
4. How Do I Complete a Contract Transfer?
Contract transfers can be finalized on any day when both the current and new contract holders are available. Here’s the process:
- Initial Payment: The proposed contract holder must pay the first week’s rent, water, and service charge before signing any documents.
- Signing the RHW10 Form: Both the current and proposed contract holders will sign the RHW10 ‘Form of Transfer,’ which will also be signed by the CHO. This form replaces the old Deed of Assignment.
- Document Handover: Provide the new contract holder with a copy of the existing contract, an RHW2 form, and the most recent gas safety certificate.
- Legal Changes: Once the transfer is complete, the original contract holder will no longer have any legal rights or responsibilities regarding the property, though they may remain living there with the new contract holder’s permission.
During this appointment, ensure all other necessary paperwork (e.g., Council tax, direct debit forms) is completed.
5. How Does a Contract Holder Apply to Transfer Their Occupation Contract?
A contract holder must complete a transfer application and return it to the Community Housing team with all relevant supporting documentation. This will kick off the investigation and approval process as outlined above.