Q&As

The tenants of a building have exercised their right to manage and a right to manage company (RTM company) has been established. On assignment, each lease requires the incoming tenant to enter into a deed of covenant with the former management company (whose duties have now been taken over by the RTM company). Is the RTM company required by section 98 of the Commonhold and Leasehold Reform Act 2002 to notify the landlord and obtain its approval of the form of the deed of covenant?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on: 12 May 2017
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The Commonhold and Leasehold Reform Act 2002 (CLRA 2002) entitles a right to manage company (RTM company) to exercise the management functions ordinarily vested in the Landlord (or a management agency) in respect of residential property. An RTM company is a company limited by guarantee and whose membership is restricted to qualifying tenants of the relevant building.

The structure of CLRA 2002, s 98 is firstly, to vest in the RTM company the functions in relation to the grant of approvals to a tenant that would otherwise be the functions

Chris Bryden
Chris Bryden

Chris was called to the Bar in 2003 and since that time has built a busy practice across a range of areas, with an emphasis on Chancery practice. He enjoys a well-deserved reputation for his knowledge and expertise in each area. He appears regularly in the County Court, Family Court and the High Court as well as various specialist Tribunals, and has been involved in cases up to and including the Supreme Court. He regularly is instructed at Appellate level. He has extensive and wide-ranging experience particularly in the areas of wills, probate and inheritance disputes; property including adverse possession, boundary disputes and issues arising out of trusts of land; company and commercial work and financial remedies. Chris is head of the Family Group and head of the Property Team at 4KBW.

Chris is the author of numerous articles in publications such as the New Law Journal, Counsel and Family Law, amongst many other titles, and is the co-author of Social Media in the Workplace: A Handbook (2015, Jordan Publishing).

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Jurisdiction(s):
United Kingdom
Key definition:
Assignment definition
What does Assignment mean?

An assignment is 'an immediate transfer of an existing proprietary right, vested or contingent from one party to another'. Assignments can occur by consent or by operation of law.

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