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TP1 and Residential Managing Agent

If costs on site are defined in the TP1 document as being charged under the TP1 document, can a Residential Managing Agent remove these costs from the estate charge and then charge for them seperately?
Have they breached the terms of the TP1

If they can split these costs away from the estate charge then what formal process should they follow?
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Comments

  • G_M
    G_M Posts: 51,977 Forumite
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    By TP1 are you referring to this?
  • hyposmurf
    hyposmurf Posts: 575 Forumite
    Yes I am thats it.in there are covenants etc
  • G_M
    G_M Posts: 51,977 Forumite
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    hyposmurf wrote: »
    If costs on site are defined in the TP1 document as being charged under the TP1 document, can a Residential Managing Agent remove these costs from the estate charge and then charge for them seperately?
    Have they breached the terms of the TP1

    If they can split these costs away from the estate charge then what formal process should they follow?
    The cost of submitting a TP1 to the Land Registry is defined by the land Registry (see here) and cannot be altered by any "Residential Managing Agent".

    If the land in question has covenants, these should be included in panel 12 when you submit the TP1.

    However I find your question confusing.
  • hyposmurf
    hyposmurf Posts: 575 Forumite
    Thanks G_M. Reason I was asking is that the Residential Managing Agent mentioned the folowing when I questioned how the charging structure, is set up and also spiltting charges away from the estate charge:

    [FONT=&quot]There was a minor adjustment these instructions a couple of years ago by resident directors where the gate charge was separated from the estate charge, so that only those who use the gate are charged. [/FONT]

    Within my TP1 document are the following terms:
    Estate management areas - means the areas of land facilities structures and amenities within the Estate for upkeep and maintenance of which the Management company is or will become responsible which comprise:

    Any entrance gates or entrance features to the estate management areas and associated equipment and machinery.

    The estate rent charge shall be a fair and proper proportion of the expenditure or estimated Expenditure as reasonably determined from time to time by the Management Company having regard to the number of properties constructed or to be constructed on the Estate on the basis that the whole of the Expenditure is to be recovered from the owners of such properties subject to the receipt and credit of any contributions received from owners outside the Estate towards the Expenditure.

    I'm trying to understand if they were in a position to alter the terms mentioned above for the security gate at all and if so what process should they have taken?

    G_M you mention that no RMA should alter the TP1.Reading the above do still think that is the case in the situation above regarding the removal of the gate charge from the estate charge and is there any where online that stipulates that TP1 can't be altered such parties as a RMA?Land registry?
  • G_M
    G_M Posts: 51,977 Forumite
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    hyposmurf wrote: »

    G_M you mention that no RMA should alter the TP1.
    No. I said:
    The cost of submitting a TP1 to the Land Registry is defined by the land Registry (see here)
    I was under the impression you were submitting a TP1 to the LR.
  • loubel
    loubel Posts: 991 Forumite
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    So the management company have decided that it is fair and proper that only those residents using the gates pay for their upkeep as part of their service charge? That sounds fair to me too...
  • Land_Registry
    Land_Registry Posts: 6,106 Organisation Representative
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    Just to clarify as to the Land Registry TP1 - this form gives effect to a Transfer of Part which is executed by seller and buyer after the terms, including any provisions such as the creation of a rent charge, have been agreed. See panel 12 of the TP1 (as G_M indicates)
    Official Company Representative
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  • hyposmurf
    hyposmurf Posts: 575 Forumite
    loubel wrote: »
    So the management company have decided that it is fair and proper that only those residents using the gates pay for their upkeep as part of their service charge? That sounds fair to me too...

    Might sound fair but then this principle is not being applied to other parts of the development, for such things as gardening etc.
    Its also the case that as G_M mentioned they do not have the right to amend what is stated within the TP1, so from a legal stand point this could cause problems in the future as they have probably breached the terms of the lease.I'd like them to split other areas of the charges away from estate charge so that they can applied to those that use them, but we could end up in a pickle in the future if the terms of the lease have been breached. I just wanted to check that what the management company are doing is correct.
  • hyposmurf
    hyposmurf Posts: 575 Forumite
    Just to clarify as to the Land Registry TP1 - this form gives effect to a Transfer of Part which is executed by seller and buyer after the terms, including any provisions such as the creation of a rent charge, have been agreed. See panel 12 of the TP1 (as G_M indicates)


    Thanks for your feedback I've looked at that TP1 and don't have a panel 12, but a part 12?Part 12 just refers to operative provision, recitals and who the deed is between. Panel 12 appears to be just on the form you submit.
    Could you elaborate on your comment above please?Do you think a Managing agent can alter the terms as set out tin the TP1?
  • loubel
    loubel Posts: 991 Forumite
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    They haven't breached the terms of the service charge.
    hyposmurf wrote: »
    The estate rent charge shall be a fair and proper proportion of the expenditure or estimated Expenditure as reasonably determined from time to time by the Management Company

    Perhaps things like gardening costs are much smaller than costs to maintain the (presumably) electric gates and so much less disproportionate for everyone on the estate to pay for them. Presumably residents benefit from the landscaped areas being kept looking nice regardless of whether they physically use them anyway, unlike access gates which it sounds like only certain residents use.

    Did your conveyancer not explain the implications of buying a property in a managed estate?
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