If a right to manage company did not follow due process who is liable?

If a right to manage company did not follow due process who is liable?

0:01 AM, 28th June 2023, About 10 months ago 3

Text Size

Hello, if a right-to-manage company or their managing agent did not follow due process, such as issuing a Section 20B appropriately, all the leaseholders of the building can withhold money for a historic SC item.

How should a right-to-management company proceed? I assume the freeholder will not be liable to make up the difference, so who would be?

Any advice would be appreciated,

Matthew


Share This Article


Comments

Kizzie

16:32 PM, 28th June 2023, About 10 months ago

Westminster.gov.uk website explains Section 20B notice. Yes major repairs fall under provisions of the lease so you must pay.
You did not explain why section 20B was not in your opinion, appropriate

JB

20:53 PM, 28th June 2023, About 10 months ago

Maybe time to inspect your D & O insurance?

Mervin SX

7:30 AM, 1st July 2023, About 10 months ago

Hi Matthew,

If the RTM company or their Managing Agent has not followed the correct Section 20 process, then the maximum amount they can legally recover is £250 per leaseholder.

If you or other leaseholders are in dispute with the RTM company, you can apply to the FTT to remove them as your management company.

If you are the director of the RTM company, restart the Section 20 process, to put things right with the leaseholders.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now