Old managing agent handover to new agent

Skag

We're in a block of 20 leaseholders who own a stake on the freehold.

We had an MA for 9 years, and they were extremely inefficient and sloppy.

We've changed MA last year, but the new MA said that the handover was very poor. We've been requesting this info from the new MA, and they said that they are in the process of getting it to us.

Is there some legislation on the amount of the handover information from one MA to another, given that we're dealing with a limited company?

eddddy

There's no specific legislation - just contract law.

Ideally, before signing the original contract with the MA 9 years ago, you should have made sure it was stated in the contract what information they would hand over to a new MA when their contract was terminated.

But obviously, it's too late to change that now. What does that contract say about handing over information?


More generally, I guess the freeholders' contract with the MA specified what information they should be providing to the freeholders (maybe service charge summaries etc). So you should get that, and you can hand it over to the new MA if you choose.


What type of information are you referring to?

Skag

Thanks, I'll look it up.

I'm referring to accountings (what went in/out), current contracts, and maintenance.

Skag

I think I've found some clauses in the old contract:

Under section Accounting:

2.3 Present service charge accounts to the Client and Leaseholders within 6 months of the relevant service
charge year end

2.7 Keep proper books of accounts of income and expenditure.

What happens if the MA failed to honour the contract? What can we, as management company do?

eddddy

Skag said:

What happens if the MA failed to honour the contract? What can we, as management company do?

If the MA has breached the contract, and you (the management company) suffer a loss as a result - you can claim damages through the courts.


For example, if you think they have £20k of unspent service charge funds which really belongs to you as freeholders/ManCo - and they won't provide accounts to prove otherwise - you could make a court claim against them for £20k.


In order to defend the claim, they'd probably have to provide a set of accounts. Otherwise the freeholders/ManCo are likely to win the claim by default.

canaldumidi

Surely all data held by the 'agent' actually belongs tothe freeholder? The agent is just... the freeholder's agent.

Hence the agent should provide the freeholder(or their designated new agent) whatever data they hold.

But if they refuse or fail todo so,I guess the only solution is a court order instructing them todo so (or risk being in contempt of court). Expensive though.....

eddddy

canaldumidi said:

Surely all data held by the 'agent' actually belongs tothe freeholder? The agent is just... the freeholder's agent.

Hence the agent should provide the freeholder(or their designated new agent) whatever data they hold.

But if they refuse or fail todo so,I guess the only solution is a court order instructing them todo so (or risk being in contempt of court). Expensive though.....

Yes - but as you say, a court order is likely to be expensive.

So it might be cheaper if they can 'flush out' the info they want by threatening a damages claim.