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Legal Risks

The Law governing Residential property management can be a minefield.

Out of approximately 80 current, relevant statutes, two of the key pieces of legislation are the Commonhold and Leasehold Reform Act 2002, and the Landlord & Tenant Act 1985 as amended 1987. These pieces of legislation govern major areas of property management, such as:

  1. Dealing with Service Charge monies, i.e. that they be held in a Trust fund, about the issuing of demands, whereby the name and address (in England and Wales) of the Landlord must be clearly stated on any demands of service charges, and how the Statement of Rights and Obligations must accompany the demand to be valid
  2. Section 20 Consultation. This legislation determines that it is obligatory to consult with Leaseholders over the placement of certain contracts, dependant on the length of the contract or indeed the cost to any one individual leaseholder. This is a multi-step communication and permission process, within which there are strict timings to adhere to.

These are just a couple of the major sections covered by current legislation. Inevitably, it will be the lesser-known areas that may cause a Director to fail to discharge their responsibilities correctly, and expose the RMC or RTM to civil or even criminal actions.

Staying legally compliant is made more difficult because most pieces of legislation amend prior Statutes, rather than begin with a coherent single new piece of law.

We at My Property have extensive experience and knowledge in the Property Management Sector and you can rest assured that we will offer legislative guidance on existing and new key issues to help you be compliant in running your property and your company.