Old Managing Agent forwarding historical unpaid invoices

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    Old Managing Agent forwarding historical unpaid invoices

    We recently gained the RTM our building in June.
    We settled the service charge accounts with the previous management company they issued a final balance for us to pay, we did. From June onwards we started managing the building with our newly appointed management company.
    In March this year some emergency repairs were carried out to our building, this week we found that the company appointed to do those works has not been paid, they contacted the previous management company who directed them to our newly appointed company saying that they should settle the invoice.

    I don't believe this is the case.

    As the work was carried out when the previous managing agent were managing the building; and appointed the contractor to carry out the work, so any agreement is between the contractor and the previous managing agent.
    In March an excess amount was added to our service charge, this was never quantified, but assumed by all to be for this work.
    I have an email at the date of handover stating the final amount we owed the previous managing agent was x, this was paid.

    I don't see how this invoice can be directed to us? Surely it's for the previous managing agent to settle and if they feel out of pocket, they would need to demonstrate with full accounts to us why we owe anything towards this invoice beyond the handover date?

    Any help on this is much appreciated.

    Jazzy

    #2
    The key word is "agent"

    Agent. Noun. a person who acts on behalf of another person or group

    Comment


      #3
      The old management company is required to hand over any monies which it holds and to let you have full details of the accounts up to the date of the transfer. Have you agreed to collect any service charge arrears and pay any outstanding bills?

      Comment


        #4
        Originally posted by eagle2 View Post
        The old management company is required to hand over any monies which it holds and to let you have full details of the accounts up to the date of the transfer. Have you agreed to collect any service charge arrears and pay any outstanding bills?
        we had details of the balances, arrears etc and these were cleared by all leaseholders, at the date of handover, up to the date of handover. This invoice did not appear in any accounts.

        no arrears or outstanding bills were agreed to be taken forward.

        Comment


          #5
          Originally posted by jazzythumper View Post
          This invoice did not appear in any accounts.
          The agent does not do closing accounts - accounts are done when the lease (or law) says it is done. The accounts are your accounts not the agent accounts.

          Comment


            #6
            The old management company must provide sufficient information in order that the RTM Company may produce the annual service charge accounts.

            If the RTM Company has not agreed to take over outstanding debts, the old management company will need to pay the invoice.

            Comment


              #7
              Originally posted by AndrewDod View Post

              The agent does not do closing accounts - accounts are done when the lease (or law) says it is done. The accounts are your accounts not the agent accounts.
              This is what has happened. The outgoing management company probably did not do everything correctly.


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                #8
                Originally posted by eagle2 View Post
                The old management company must provide sufficient information in order that the RTM Company may produce the annual service charge accounts.

                If the RTM Company has not agreed to take over outstanding debts, the old management company will need to pay the invoice.
                Thanks, this is helpful ­čĹŹ­čĆ╗

                Comment


                  #9
                  Originally posted by eagle2 View Post
                  The old management company must provide sufficient information in order that the RTM Company may produce the annual service charge accounts.

                  If the RTM Company has not agreed to take over outstanding debts, the old management company will need to pay the invoice.
                  Do you have an authority for this opinion?

                  Comment


                    #10
                    The RTM is responsible for the period after handover. The period before handover date is under the old management company.

                    Comment


                      #11
                      Originally posted by jazzythumper View Post
                      As the work was carried out when the previous managing agent were managing the building; and appointed the contractor to carry out the work, so any agreement is between the contractor and the previous managing agent.
                      It's not as simple as that.
                      Unless the freeholder, or their managing agent, cancels existing contracts prior to the date that a RTM Company takes over, agreements can become the responsibility of the RTM Company.

                      For example, if the RTM Company want to replace the gardener, they would have to give whatever notice is required to the existing gardener and pay them during any period that they continue to work.

                      How should be paying the contractor for the work you are disputing here may not be as straightforward as you think - the directors of the newly established RTM Company should have ensured that things like this were properly covered prior to the handover date (but it's always easier with hindsight).

                      Did the RTM Company take over at the beginning of a service charge year?
                      Was there any balance of funds held by the managing company that was handed over?
                      Were the outgoing managing agents asked to provide any sort of confirmation that there were no invoices that remained outstanding?

                      Comment


                        #12
                        Originally posted by Gordon999 View Post
                        The RTM is responsible for the period after handover. The period before handover date is under the old management company.
                        But any legitimate service charge costs are charged to the service charge account, regardless of who is responsible for management at the time...

                        Comment


                          #13
                          I (sort of) retract my last comment. But as Macromia says, it depends when (under the lease) the thing becomes payable. If it was payable under the lease to the pre-RTM manager then it is up to them to chase it (not their responsibility to cover the cost). If it becomes payable once he RTM has taken over then it is a service charge item for the RTM.

                          Comment


                            #14
                            The usual procedure is for the previous management company to collect service charge balances, pay outstanding bills and transfer the balance of service charge monies to the RTM Company unless there is an alternative agreement between them.

                            Comment


                              #15
                              Yes but invoices are payable when issued, and they cannot pay invoices that are not due. So the bill is not outstanding ... until it is. They cannot collect service charges that are not due.

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