Right to reject management company

JazF

I have recently inherited my fathers flat which is in a block of six. The residents had took the option of Right to Manage some years ago with my father doing a lot of the paperwork.
However after he died they decided to dissolve the management company which they ran themselves.
I have found a buyer for the flat and the sale is now going through, but I have received a letter from a management company taking over the flats asking for £159 for their services.
Can they decide who to appoint without my consent and do I have the right to reject the company as I wasn't consulted?

DVardysShadow

Can you explain what happened with the flat between your father's death and you inheriting? Was the flat held by an Executor? Or were you the Executor? Because the Executor should have been involved in the dissolution of the Management company - and there may even have been funds shared out 6 [or 5?] ways. I think you either need to ask the Executor or ask with the Executors hat on first.

Richard_Webster

If a company was set up to exercise the right to manage then it did so by taking that right away from the person/entity (presumably the freeholder) who had that right. If the RTM company ceased to exist then presumably the freeholder was once again free to appoint its own managing agent.

Hopefully Propertyman will be along shortly with some leasehold answers on this and will put me right if I am wrong.

DVardysShadow

Richard_Webster wrote: »

If a company was set up to exercise the right to manage then it did so by taking that right away from the person/entity (presumably the freeholder) who had that right. If the RTM company ceased to exist then presumably the freeholder was once again free to appoint its own managing agent.

Hopefully Propertyman will be along shortly with some leasehold answers on this and will put me right if I am wrong.

That sounds about right. But in being concerned about the situation going forwards, OP may be missing whatever went on at the demise of the RTM company.

propertyman

The landlord can choose to resume duties but is under no obligation to do so ( nor can a court force them to do so) if an RTM is dissolved.

The questions are

1; is the RTM dissolved ( they may for whatever reasons- irrecoverable fees under the lease- created a separate managing "agent" company )

2: who is appointing the agent; the RTM or the landlord

If it is an RTM appointment then that would be for the Directors to decide, though they are accountable to the members of the RTM, unless the articles or other standing orders require consultation and or resolution.

If it is either LL or RTM appointment, the fees must be recoverable under the lease, and there is no need to consult as long as the contract is for 12 months or less. In very rare cases the lease might have some obligation.

Finally ( :j) if the LL and the RTM are not involved and the residents have just decided to appoint someone, then they can't, there is no person or body to instruct them as neither has the authority to collect charges or discharge the duties under the lease.

If you can answer questions 1 & 2 we can take it from there.

propertyman

Richard_Webster wrote: »

Hopefully Propertyman will be along shortly with some leasehold answers on this and will put me right if I am wrong.

High praise indeed - I am humbled.

PS you are giving away my secret identity- only my Butler know my alter ego :cool::rotfl:

JazF

As executor of the estate I received grant of probate at the beginning of December and a buyer was found almost immediately.
I haven't spoken to any of the residents as yet but I think it is the RTM which have appointed the management company.

DVardysShadow

OK, the flat still belongs to the estate. If the RTM has appointed the management company, you need to get the RTM company to explain to you [as Executor] how the decision was arrived at and provide all information relevant to the appointment of the company. Plus I suggest, taking a look at the RTM company accounts.

As Executor you have a responsibility to get to the bottom of all of these issues and if any other person stands to lose inheritance if you do not follow through, you could be liable personally.

propertyman

JazF wrote: »

As executor of the estate I received grant of probate at the beginning of December and a buyer was found almost immediately.
I haven't spoken to any of the residents as yet but I think it is the RTM which have appointed the management company.

Any bills should contain the name of the RTM company usually in small print"notice under section 47/48 of the landlord and tenant 1987 the.. landlord.. is" ( in an RTM, it is treated as the landlord).

1: Go to companies house and look up the company name, its free, and it will indicate if the RTM is dissolved , or active, and whether accounts and return are up to date. http://wck2.companieshouse.gov.uk/11320b051f6af3d76c2229be8c94d458/wcframe?name=accessCompanyInfo

2: Read the lease; does it allow for the fees of an agent to be recharged?

missile

Is it really worth arguing over £159?

propertyman

Perhaps not.

But if the OP is right and the RTM was dissolved, then there is no one who has the legal authority to meet the obligations under the lease or appoint an agent.

That is almost always fatal to a lender or a buyer.