does section 20 apply

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    does section 20 apply

    I own a flat which has RTM, we appointed a local company to manage ( always reliable they managed other blocks where we own flats) they have now been bought by RGM. On checking the accounts I discovered they have a roof survey done which cost £2800 and £185 scaffold hire, they did not consult directors of RTM or lessees. We have all been paying more service charge to build up a reserve for the roof, we had obtained quotes for a re roof a couple of years ago. Therefore survey was unnecessary, did this fall within section 20 or have they acted illegally by not consulting the directors first .

    #2
    They work for the Directors. Does your contract with them state they can do thing off their own bat?

    How many flats in the block.

    Sounds as if you are being take for a ride. Probably terminate their contract.

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      #3
      That company & I are old friends.

      The FTT ordered them to repay £1000 to me and refund my hearing fees in 2014. (They also had to refund £1000 to each of my four fellow lessees.)

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        #4
        RGM sounds like a company previously under Erinaceous , a listed company which collapsed about 12 years ago due to fraud by one of their surveyors.

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          #5
          It is the RTM that would be in default for not carrying out a section 20 consultation, not so much the managing agent.

          Good practice would be to have expenditure limits beyond which they could only proceed with approval from the RTM. On the other hand, requiring approval for all expenditure would get very bureaucratic.

          I think surveys are a grey area for s20.

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            #6
            We are definitely terminating contract, not very happy when found out that RGM had taken over knew they were a problem . W are going to check over our agreement and then take matter further. Its about time there was better clarification with S20. i am sure RGM looked at reserve fund and decided they would like some of it . At the moment they are saying its not covered by section 20.

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