Q&As

Can the cost of setting up the RTM Company and legal costs in having a solicitor assist with the statutory procedure to bring about a RTM be treated as a service charge? If not, other than a participation agreement, how can the active participants ensure that all in the block contribute towards the cost?

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Published on LexisPSL on 28/07/2017

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Can the cost of setting up the RTM Company and legal costs in having a solicitor assist with the statutory procedure to bring about a RTM be treated as a service charge? If not, other than a participation agreement, how can the active participants ensure that all in the block contribute towards the cost?
  • RTM Company

RTM Company

The (right to manage) RTM is a statutory construct by virtue of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002).

CLRA 2002, s 88(1) provides that in consequence of a claim notice given by the RTM company, the company is liable for the reasonable costs incurred by:

  1. a landlord under a lease of the whole or any part of the premises

  2. a party to such a lease otherwise than as landlord or tenant; or

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