Service charges in commercial property—summary of the third edition of the service charge code [Archived]
Service charges in commercial property—summary of the third edition of the service charge code [Archived]

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Service charges in commercial property—summary of the third edition of the service charge code [Archived]
  • What is the status of the Code?
  • Why do solicitors need to be aware of the Code?
  • The core principles
  • What are the main recommendations of the Code?

ARCHIVED: The third edition of the Royal Institution of Chartered Surveyors (RICS) Code of Practice ‘Service charges in commercial property’ (and all previous versions) has been superseded by the first edition of RICS professional statement, ‘Service charges in commercial property’, which is effective for all service charge periods commencing from 1 April 2019. . The professional statement contains new mandatory obligations on RICS members and firms regulated by RICS, which aim to ensure that service charges to commercial tenants are transparent, upfront and fair, and that any costs incurred to repair or maintain their buildings are in accordance with the terms of their lease. Please, therefore, note that this Practice Note sets out the historic position under the superseded third edition, for information only, and will not be updated further. See Practice Note: A review of the RICS Professional Statement on Service Charges in Commercial Property (1st edition) for further guidance on the professional statement and the differences from the third edition..

The third edition of the Royal Institution of Chartered Surveyors (RICS) code of practice for commercial service charges (the Code) came into effect on 4 February 2014. The Code aims to:

  1. promote best practice, uniformity, fairness and transparency

  2. ensure timely issue of budgets and year-end certificates, and

  3. reduce the causes of disputes and provide guidance on resolving disputes

The Code