Following RTM, old AND new management companies demanding money for management pack?!

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    Following RTM, old AND new management companies demanding money for management pack?!

    Weird, this. Thanks to the help of the good people here, I was able to achieve the RTM for my block and extend my lease so that I pay a peppercorn in rent. I've had nothing to do with our old management company since.

    However they are demanding for:

    a. £500 for a management pack (I have already paid our current managing agents for one)
    b. £150 fees for a notice
    c. £250 fees for a deed of covenant
    d. A signed waiver from me that I will not take them to court for historic issues

    I'm not inclined to give them any of this stuff - as I understand it, all management functions move to the RTM co following RTM - but I wanted to know if anyone has any experience of this, and if any of those demands are reasonable.

    Cheers

    #2
    You may have to pay any reasonably incurred costs for work that the managing agents did before you replaced them, potentially including costs associated with preparing the paperwork, etc., that they should have handed over. In part this may depend on the terms of the contract that the previous managing agents had.

    Whether you should pay for the 'notice' and/or 'deed of covenant' will also depend on what they are for.

    I see no reason at all why you should sign a waiver.

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      #3
      After administration of the service charge account has been handed over to RTM, all fees chargeable under the lease are due to RTM.

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        #4
        Originally posted by Gordon999 View Post
        After administration of the service charge account has been handed over to RTM, all fees chargeable under the lease are due to RTM.
        Yes - but the RTM has to pay any legitimate service charge invoices that have not yet been paid, which would include anything that the managing agents are owed.

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          #5
          Hi Benzo, I recall the long running saga and the RTM Company was set up some time ago. I have no doubt that the old management company charged for everything and probably more besides at the time. As you suspect, the charges are definitely unreasonable. The RTM Company would be entitled to receive any management and notice fees. The freeholder may be entitled to charge a reasonable sum for any information which it is required to provide regarding ground rent arrears but it could not justify a sum of £500, it would probably have difficulty justifying £50.

          As for you signing a waiver, they must be joking, why should you? Perhaps you should respond by suggesting that they pay you a lump sum in order to draw a line in the sand,

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            #6
            Thanks guys. I should've been slightly clearer that my account is closed with my old management company with all service charge / ground rent payments completed from my side. (In fact they owe ME for two months service charge!)

            This is entirely about new charges involved in me attempting to sell my flat. From what I can tell they haven't got a leg to stand on.

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              #7
              The notice and deed of covenant will be to the freeholder (or his agent) regardless of RTM and the fee seems to match industry standards.
              Potential buyers may be put off by the ongoing dispute, I would.

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                #8
                My understanding is that the RTM Company deals with all notices and it only needs to inform the freeholder of changes.

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                  #9
                  Originally posted by Benzo View Post
                  This is entirely about new charges involved in me attempting to sell my flat. From what I can tell they haven't got a leg to stand on.
                  Charges for what?

                  If you your sale started after the RTM took effect, and the new managing agents were already in position, the old managing agent should have had no involvement, and there should therefore be nothing they should be charging you for.

                  On the other hand, if you starting trying to sell your flat before the new management agent was in position, and the old managing agent was asked to provide a 'pack', or provided other services linked to the sale, it might be reasonable for them to charge you for services that they have provided.

                  Comment


                    #10
                    Macromia,

                    Agree on all. We terminated ur relationship with the old management company in 2019 with all accounts settled. I didn't begin to sell my place until summer 2021.

                    I have found some information out from my solicitor and I'm pasting it here in case anyone else finds themselves in the same situation:

                    1. the Notice and Deed Of Covenant may be issued by the RTM company but they need to inform the freeholder of their intention to do this; the freeholder has 30 days to object. In the interim these types of change may be taken care of by the previous managing agent even following RTM.
                    2. the seller of a flat is under no obligation to buy a management back from the previous managing agent; however it may sometimes be necessary if the buyer wants to check that the flat is up to date with all previous payments to all previous managing agents. Basically, if the buyers solicitors ask for it, they don't need it, BUT having the argument may delay your sale - and with a stamp duty holiday looming that may be significant.

                    I cannot wait to be out of here. It's a good place to live now but my previous experience with the previous managing agent has soured me on them entirely. I will never buy another property with a managing agent.

                    Comment


                      #11
                      Is there any ground rent which is still payable to the freeholder?

                      I suggest that the RTM Company informs the freeholder that it will deal with management packs, notices, deeds of variation etc

                      The RTM Company should only need to seek confirmation that any ground rent is up to date, it will have details of service charges. Or is the freeholder claiming some service charge arrears prior to 2019? If so, you will probably need to apply to the Tribunal to determine the amount before a sale can take place.





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                        #12
                        I got a little more clarity on it.

                        The Deed of Transfer and Notice will be necessary for my buyers to pay until the RTM Co informs the freeholder that they'll be doing it from now on. I have instructed our managing agents to do so.

                        The sellers' pack has been requested by the buyers and because we did our RTM within the last three years, DOES seem to be something they require. If we'd had RTM for three years + this wouldn't be necessary.

                        There are no outstanding payments due to the freeholder; however they did take double service charges for two months so they do owe me money.

                        Comment


                          #13
                          The previous agent is still overcharging and either you or the purchaser can claim that the amounts are unreasonable.

                          If you intend to pursue a claim for the recovery of monies from the freeholder, you should commence the claim before you sell the property.

                          Comment


                            #14
                            Originally posted by eagle2 View Post
                            The previous agent is still overcharging and either you or the purchaser can claim that the amounts are unreasonable.

                            If you intend to pursue a claim for the recovery of monies from the freeholder, you should commence the claim before you sell the property.
                            Absolutely. Of course the thing with selling is that there's always a time limit - I'm sure I could take them to tribunal and argue my case but that would mean putting my sale on hold for six months or so. And of course they know it.

                            I hope I won't be posting much here in the future but I really appreciate the efforts you and everyone else puts into advice. Without this place I'd have gone nuts years ago.

                            Comment


                              #15
                              Thanks Benzo, your comments are appreciated although to be fair it was Lawcruncher who helped you the most. It is a shame that these people get away with their outrageous charges and even losing before the Tribunal does not stop them.

                              I shall miss your posts and especially the news about your dogs, but you will be welcome to return at any time. Good luck and all the best.

                              Comment

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