Section 78 Notice

What Is the Section 78 Notice?

The Section 78 notice is the RTM notice inviting participation. It must be served on every qualifying tenant before serving the Section 79 claim notice.

The notice invites qualifying tenants to become members of the RTM company and participate in the RTM claim. It does not commit anyone to joining and does not start the formal statutory RTM process.

The Section 79 claim notice cannot be served until at least 14 days after the Section 78 notice.

Who Must Receive the Section 78 Notice?

The Section 78 notice must be served on every qualifying tenant in the building.

A qualifying tenant is a long leaseholder with a lease originally granted for more than 21 years. This includes leaseholders who are already RTM company members and those who have not yet joined.

Failing to serve the notice on even one qualifying tenant can cause the RTM claim to fail if the freeholder objects.

14-Day Minimum Period

The Section 79 claim notice cannot be served until at least 14 days after the Section 78 notice was given to qualifying tenants.

This 14-day period gives leaseholders time to consider RTM membership and decide whether to participate.

Serving the claim notice too early invalidates the RTM process.

Common Section 78 Notice Defects

• Failing to serve the notice on all qualifying tenants
• Serving it to the wrong address
• Not waiting the full 14 days before serving the Section 79 notice
• Missing information about the building or RTM company