5AExemptions from disclosure provisions—unsolicited offers

5A Exemptions from disclosure provisions—unsolicited offers

Unsolicited offer (1) An unsolicited offer is made to an owner or a lessee of a building or an area of a building (the offer recipient) in relation to a building or an area of a building if: (a) a person starts negotiations with the offer recipient with a view to making an offer to enter into a contract under which a contingent obligation or right to purchase, lease or sublease the building or the area of the building would be created; and (b) as a result of the negotiations, an offer mentioned in paragraph (a) is made by one of the following persons (the offer maker): (i) the person who started the negotiations; (ii) a representative of that person; (iii) an entity set up in order to make the offer; and (c) the offer is the only offer to result from the negotiations; and (d) during the 6 months before the offer is made, the offer recipient has not: (i) made any offer to sell, let or sublet the building or the area; or (ii) invited any offer to purchase, lease or sublease the building or the area; or (iii) advertised the building or the area for sale, lease or sublease.

Note: For offering to sell, let or sublet a building or an area, or inviting an offer to purchase, lease or sublease a building or an area, see sections 4 and 5 of the Act.

Grant of exemption (2) For paragraph 17(3)(c) of the Act, the circumstances are that the Secretary is satisfied that: (a) an unsolicited offer has been made in relation to a building or an area of a building; and (b) the exemption would facilitate further negotiations between the offer maker and the offer recipient; and (c) during the 6 months before the application for the exemption is made, the offer recipient has not been granted an exemption on the basis of an unsolicited offer in relation to the building or the area to which the application relates. Period for which exemption is in force (3) An exemption on the basis of an unsolicited offer in relation to a building or an area of a building is in force from the day the exemption is granted until the earliest of the following times: (a) the end of the period of no more than 12 months that is specified by the Secretary in the exemption; (b) the entry of the offer recipient and the offer maker into the contract to which the unsolicited offer relates; (c) the termination of the negotiations to which the exemption relates without the entry into the contract; (d) the start of negotiations to purchase, lease or sublease the building or the area between the offer recipient and someone other than the offer maker; (e) immediately before the building or the area is advertised for sale, lease or sublease. Extension of exemption (4) The Secretary may extend an exemption on the basis of an unsolicited offer for a further 12 months if the offer recipient gives the Secretary a written statement verifying that the negotiations to which the exemption relates are continuing.