The right to manage blocks of flats—the RTM company and the right to participate
The right to manage blocks of flats—the RTM company and the right to participate

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

  • The right to manage blocks of flats—the RTM company and the right to participate
  • The RTM company
  • Membership of the RTM company
  • Notice of invitation to participate
  • Obtaining information
  • Anti-avoidance

The RTM company

The right to manage can only be acquired and subsequently exercised by a right to manage company (RTM company). This must be a private company limited by guarantee which has the right to manage as one of its objects. The content of the company’s articles in England is prescribed by RTM Companies (Model Articles) (England) Regulations 2009, SI 2009/2767 (RTM Companies (Memorandum and Articles of Association) (Wales) Regulations 2011, SI 2011/2680 in Wales).

The articles of association must define the premises sufficiently.

The RTM company cannot be a commonhold association, nor can there be more than one RTM company in relation to the premises in question (as might otherwise arise if an estate were divided into several blocks of flats, and the right to manage were exercised by the tenants in one of the blocks and then the tenants in the remaining blocks applied for the right to manage the entire estate).

In Triplerose, the Court of Appeal decided that a single right to manage (RTM) company cannot exercise its right to manage over more than one set of premises. The right applies only to a single self-contained building (ie structurally detached) or part of a building.

It is not compulsory for the RTM company to have the letters ‘RTM’ in its name (Fairhold Mercury v HQ (Block 1)