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Service charge arrears have arisen for the year before we moved in. Who should pay?

Hi all hope you can help. We bought our flat 18 months ago in July 2022.

There were no know arrears on the service charge for our block of flats. Unfortunately the Management company/freeholders have made HUGE errors in accounting and have gone and looked at previous years and have found that money is owed for the year before we moved in (for the year April 2021 to March 2022).

Are we able to go back to the person we bought this flat from and legally they have to pay this bill, or is this a case where all bills and debts are forwarded to us as as we as the legal owners now?
Thanks in advance 
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Comments

  • You can certainly claim from the previous owners. Whether they will cooperate is another matter....
    The Manco are likely to pursue you for this. Given it was their errorn you'd have goodn grounds to claim you are not liable. How a Tribunal would rule I'm not sure.
  • eddddy
    eddddy Posts: 17,827 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 26 February 2024 at 4:49AM

    There are a few considerations here...
    • The date the service charge bill is issued is important. It sounds like it was issued after you become the leaseholder in July 2022 - so you are liable to pay it. (Even though it relates to 2021/22)
    • But when you bought the flat, you contract with the seller probably said that the seller would reimburse you if this happened. So you can try claiming from the seller. (Often your solicitor would arrange a retention to deal with this.)

    If appropriate, you can try arguing with the Man Co / Freeholder over the 18 month rule. But if they won't back down, as with all disputed service charges, it's generally best to pay it under protest, and challenge it at a tribunal later.


    (Similarly, if anything on the service charge bill is unreasonable for any other reason, you can pay it under protest, and challenge it at tribunal as well.)

  • Have you asked the solicitor you used to buy the property if a retainer was taken from the seller for this kind of thing? 
  • penners324
    penners324 Posts: 3,486 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Your Conveyancer should have a retainer on account. Claim it.
  • 492800
    492800 Posts: 192 Forumite
    Part of the Furniture 100 Posts
    Your Conveyancer should have a retainer on account. Claim it.
    Unfortunately the retainer was only to be held for a year so it has been already been returned
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  • user1977
    user1977 Posts: 17,444 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    492800 said:
    Your Conveyancer should have a retainer on account. Claim it.
    Unfortunately the retainer was only to be held for a year so it has been already been returned
    Does your contract make the vendor liable for sums which later surface?
  • amandaleeds
    amandaleeds Posts: 218 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    When I sold my flat, I had to pay the ManCo over £300 to fill in a special form which included confirmation that I was up to date with service charge payments. You or your solicitor should have a copy if this (LPE1?)
    Won so far in 2017: ipad mini :j
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