Right to Manage

Since the commencement of Chapter 1 of the Commonhold and Leasehold Reform Act 2002, qualifying tenants of flats are entitled to form a “Right to Manage” company.

A RTM Company gives Tenants the right to take over management of their building from either the Landlord or Management Company without the need to show fault.

The procedure for set up a RTM company and acquiring the right to manage is detailed and can be complex. At PDC Law, we understand that Landlords and Management Companies are keen to ensure that if the right to manage is to be passed to Tenants it needs to be done properly and in accordance with the law. This is also in the best interests of right to manage companies themselves as it is not uncommon for Tenants in subsequent court proceedings to allege that the RTM company was not set up properly or that the appropriate steps were not taken and, consequently, service charges demanded are not due.

Disputes can also arise (i) as to the precise nature and extent of the rights acquired (ii) the handover or relevant documents/ information and (iii) ensuring that the appropriate service charge balance (i.e. relating to “non-committed service charges”) are transferred to the RTM company.

To instruct us or for further information please contact Reece.Wheeldon@PDCLaw.co.uk.

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