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Q&As
Law firms—sector specific guidance Please see Q&A: Can I charge a client for retrieving and or returning their file? This is based on Law Society guidance that clearly anticipates firms can charge clients for file storage and retrieval. We have, therefore, retained the section in Precedent: Terms of business for law firms, that states: ‘If we retrieve your file from storage [(including electronic storage)] in relation to continuing or new instructions to act for you, we will not normally charge for the retrieval. If we retrieve your file from storage for another reason, we may charge you for:
Q&As
The Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) only applies to a ‘construction contract’, namely a contract that satisfies all of the requirements set out in HGCRA 1996, ss 104 to 106 (and, for contracts concluded prior to 1 October 2011, HGCRA 1996, s 107). A construction contract is an agreement to carry out ‘construction operations’ or arrange/supply labour for such operations (HGCRA 1996, s 104). The activities which constitute construction operations for the purposes of the act are set out in HGCRA 1996, s 105(1), albeit subject to HGCRA 1996, s 105(2) which lists excluded works that do not amount to construction operations. Where a contract involves both construction operations and non-construction operations (sometimes referred to as a hybrid contract) the HGCRA 1996 will still apply but only to those parts of the contract which are concerned with construction operations. Construction operations If the works in question do not fall within the list in HGCRA 1996, s 105(1), they are not construction operations under
Q&As
The Housing Grants, Construction and Regeneration Act 1996 (HGCRA 1996) only applies to contracts for construction operations. The relevant parts of HGCRA 1996 dealing with what is within and what is outside the scope of HGCRA 1996, Pt II are HGCRA 1996, ss 104 and 105. Construction operations The starting point is HGCRA 1996, s 105 and the definition of ‘construction operation’. While HGCRA 1996, s 105 refers to ‘maintenance, extension, demolition or dismantling of buildings, or structures forming, or to form, part of the land (whether permanent or not)’, there is no reference to operating such plant. Therefore, while the maintenance element of a contract relating to the operation and maintenance of power generating plant could fall within the definition of construction operation, the operation element would not. Forming part of the land The maintenance element would only fall within the definition at HGCRA 1996, s 105 if it relates to ‘buildings or structures forming, or to form, part of the
Q&As
As stated in Q&A: Could a lease which is a long lease be subject to the grounds for possession under the Housing Act 1988 by virtue of the ground rent rising in excess of £1,000 after a comparatively short period of time? If so, would a clause be effective which provides that even in the event that the lease is an assured tenancy at any time and there are ground rent arrears, the landlord cannot rely on ground 8 to recover possession?: ‘The requirements for an assured tenancy (AT) (including an assured shorthold tenancy) are set out in section 1 of the Housing Act 1988 (HA 1988). This provides: “A tenancy under which a dwelling-house is let as a separate dwelling is for the purposes of this Act an assured tenancy if and so long as– (a) the tenant or,
Q&As
Insurance Intermediaries: conflicts of interest and the Insurance Distribution Directive (IDD) This Q&A addresses how insurance intermediaries should handle conflicts of interest following implementation of Directive (EU) 2016/97, the Insurance Distribution Directive (IDD). The IDD applies from 1 October 2018. It is not directly applicable and is implemented by the Insurance Distribution (Regulated Activities and Miscellaneous Amendments) Order 2018, SI 2018/546. Its primary aim is to enhance consumer protection when buying insurance, including general insurance, life insurance and insurance-based investment products (IBIPs). It thus applies to insurance intermediaries who distribute any type of insurance product. Nonetheless, the IDD imposes more prescriptive obligations specifically on IBIP distribution so as to align customer protection in this area more closely with MiFID II; see, in
Q&As
The Landlord and Tenant Act 1985 (LTA 1985) operates by imposing a series of constraints on the recoverability of residential services charge. It does not operate to directly limit the terms on which services are provided to tenants or the building their unit is located in. Rather it puts landlords at risk the result falls outside the constraints imposed. So service charges that are not reasonable or demanded within the provided time-frame will not be recoverable. Qualifying long term contracts are subject to an additional constraint namely the requirement for consultation. Qualifying long term contracts are those contracts lasting 12 months or more under which services costing each tenant £100 or more per year. Where
Q&As
The Landlord and Tenant Act 1987 (LTA 1987) applies to premises which contain at least two flats held by qualifying tenants, provided no more 50% of the premises are occupied other than for residential purposes (LTA 1987, s 1(1)–(3)). In general terms, any tenant who does not have the protection of the Housing Act 1988 will be a qualifying tenant (although see LTA 1987, s 3(1) for the full definitions). Although LTA 1987 does not adopt the definitions seen in leasehold enfranchisement legislation, where a lease has been granted since 1989, if it is a long lease granted for a premium on a low rent, the tenant will be a qualifying tenant. See Practice Note: Landlord and Tenant Act 1987—who is a qualifying tenant? The LTA 1987 employs the concept of ‘relevant disposal’. This is any disposal of any estate or interest in the premises (LTA 1987, s 4(1)). Certain types of disposal are not relevant
Q&As
This Q&A assumes that the question relates to a commercial, business-to-business agreement which makes no reference to interest on late payments or to the refund of payments. With some exceptions, the Late Payment of Commercial Debts (Interest) Act 1998 (LPCD(I)A 1998) applies to contracts for the supply of goods or services where the purchaser and the supplier are each acting in the course of business. A term is implied into contracts which fall under LPCD(I)A 1998 that any qualifying debt shall carry simple interest (LPCD(I)A 1998, s 1). Generally speaking, again, with some exceptions, 'purchaser' means, the buyer in a contract of sale or the person who contracts with the supplier in any other
Q&As
The Leasehold Reform (Ground Rent) Act 2022 (LR(GR)A 2022) received Royal Assent on 8 February 2022 and came into force (save in respect of some leases of retirement homes) on 30 June 2022. The effect of LR(GR)A 2022 is that recovery of ground rents under qualifying long residential leases (referred to in LR(GR)A 2022 as 'regulated leases') is effectively abolished (see
Q&As
The Limitation Act 1980 (LA 1980) does not apply to a claim for proprietary estoppel. LA 1980, s 21(1), which disapplies any limitation period to claims against trustees in certain circumstances, applies to actions ‘by a beneficiary under a trust’. LA 1980, s 21(3), which applies a six-year limitation period, applies to ‘an action by a beneficiary to recover trust property or in respect of any breach of trust’. The term ‘trust’ extends to implied and constructive trusts. It is not possible to describe a claim under proprietary estoppel as a claim by a beneficiary, to recover trust property or arising
Q&As
This question raises the issue of the period after which a defendant to proceedings for recovery of service charges under a lease can rely upon a defence under the Limitation Act 1980 (LA 1980). This answer will focus upon that point rather than any other statutory limits upon recovery which arise in the context of residential leases. By way of example section 20B of the Landlord and Tenant Act 1985 prevents a landlord from making a demand for service charge in respect of