FTT Appointed Manager in Doghouse. Now what?

FTT Appointed Manager in Doghouse. Now what?

9:42 AM, 23rd August 2021, About a month ago 76

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A friend has just forwarded me a copy of a recent service charge case where the First Tier Tribunal makes 5x references to the Appointed Manager subverting the management order and another 5x references to the Appointed Manager breaching his fiduciary duties. The report concludes that the Appointed Manager did this for his own financial gain.

I have highlighted in yellow the most relevant portions of the 35-page report: Click here to view the report. Some examples given in the report are:

1. Charging £93,000 for major works that should have cost no more than £25,000.
2. Entering into a ‘management agreement’ with his own daughter’s block management company – where he is the sole shareholder.
3. Granting major work contracts to companies that the Appointed Manager had an undeclared financial interest in – and denying the connections when explicitly questioned on the matter.
4. Transferring service charge and reserve fund monies into his own ‘non-trading’ company bank account – and denying any connection with the company when explicitly questioned on the matter.
5. Using leaseholders’ reserve fund contributions to offset the service charge arrears of the freeholder.

Although this Appointed Manager’s management order is at an end at this particular building, my friend informs me that the Appointed Manager is the First Tier Tribunal Appointed Manager at another 7 buildings; manages c.150 buildings through his daughter’s block management company – where he is the sole shareholder and continues to operate without a care in the world.

Is it me, or is there something wrong with this picture?

Paul



Comments

by Gulliver

17:56 PM, 27th August 2021, About 4 weeks ago

by Vivienne Somerville

22:29 PM, 27th August 2021, About 4 weeks ago

Reply to the comment left by Shreena Shah at 27/08/2021 - 13:19

I cannot believe that ARLA told you that they cannot give you details of the professional indemnity insurer.
From what you have said it sounds as though this was not simple incompetence on the agent's part.
Unfortunately I have heard of cases where a letting agent knowingly rents a property out to a cannabis farm operator or even a brothel operator for an enhanced rent e.g. charging the tenant £3,000 a month and turning a blind eye on the activities when the actual rent due to the landlord is only £1,500 a month.

by Vivienne Somerville

12:42 PM, 28th August 2021, About 4 weeks ago

Reply to the comment left by BernieWales at 27/08/2021 - 09:17I stand corrected. An FTT Appointed Manager is not an employee of the FTT. An FTT Appointed Manager is an officer of the FTT. I think that I was just trying to spell out the chain of command e.g the FTT is in charge of the FTT Appointed Manager (or at least should be).

by BernieWales

13:31 PM, 31st August 2021, About 4 weeks ago

Reply to the comment left by Gulliver at 27/08/2021 - 17:56
ABC are not members of ARMA, thus ARMA cannot do anything. (And I very much doubt ABC would get through the ARMA-Q vetting process.)

by Gulliver

14:29 PM, 31st August 2021, About 4 weeks ago

Reply to the comment left by BernieWales at 31/08/2021 - 13:31

Are you certain that ABC Estates is not an ARMA member? I believe that they are an ARMA member under the name ABC Block Management Limited. See the printout that I have just made from the ARMA search for a member website option:
https://1drv.ms/b/s!AkKBm3fxCVLJePhxZ-ZvhBLnkXU
Also page 2 of ABC Estates’ block management brochure bears the ARMA logo on it:
https://abcestates.co.uk/wp-content/uploads/2020/07/abc-estates-block-management-1.pdf?fbclid=IwAR3lhwkqKuMjdtvrQZ8jQRwQs-5Rfco6OYKhujrLxFxRTjIHbsjeT38Jtzg

by BernieWales

14:42 PM, 31st August 2021, About 4 weeks ago

Reply to the comment left by Gulliver at 31/08/2021 - 14:29
In that case, I'll refer the subject to Nigel Glen for review and (hopefully) action.

by Kim Ishola

9:09 AM, 1st September 2021, About 4 weeks ago

Reply to the comment left by BernieWales at 23/08/2021 - 11:53I am afraid that I know of several FTT appointed Managing Agencies whose background prove that they shouldn’t be trusted to manage a graveyard.
There is absolutely no due diligence carried out by FTT caseworkers on MA’s touting for business. It is a scandal and I have written to the regional judges to voice my concerns.

Many leaseholders are so beleaguered and feel let down by the FTT that they do not complain if the appointed FTT Agent behaves inappropriately. Rogue MA’s behave like thugs, They bully and attempt to intimidate leaseholders. They must be regulated!

by Kim Ishola

9:23 AM, 1st September 2021, About 4 weeks ago

Reply to the comment left by BernieWales at 31/08/2021 - 13:31
ARMA is as much use as a chocolate teapot.
I believe that ‘ Firstport’ is still a member.
If an MA is RICS/ ARMA/ it does not mean that they are any less unscrupulous than than the average crook. In fact, my research has found that the most unscrupulous pay the large annual sums to the aforementioned organisations to cloak themselves in the patina of faux respectability.

REGULATE MANAGING AGENTS.

by BernieWales

9:57 AM, 1st September 2021, About 4 weeks ago

Reply to the comment left by Kim Ishola at 01/09/2021 - 09:23
Perhaps you should share that evidence here, Kim.

by Kim Ishola

10:13 AM, 1st September 2021, About 4 weeks ago

Reply to the comment left by BernieWales at 01/09/2021 - 09:57
I prefer to provide evidence to the regional judges, police and Jenrick. In fact I have just written to Tim Powell who I am sure you know is the regional judge for the LONDON FTT


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