RTM directors refusing to sign LPE1 form. Unable to sell property.

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    RTM directors refusing to sign LPE1 form. Unable to sell property.

    Dear LLZ members

    I am one of three leasehold directors of a RTM leasehold flat. I am in the process of selling the flat. I have completed the LPE1 form as a director. The buyers solicitor has asked for the form to be signed by at least one other RTM director. I am struggling to get this form signed, despite several requests. One of them replied with some edits to the form but then stated he is unwilling to sign until the other signs, and this other director is completely ignoring my requests.

    My query is:

    1. Is it absolutely essential to have the LPE1 form signed by more than 1 director apart from myself?
    2. If so and I am unable to do so, are there any work arounds
    3. If I lose this sale due to lack of co-operation from the co-directors in completing documentation, do I have any grounds to sue them for the fact that I will then need to sell via auction at a lower price?

    Many thanks for any input or suggestions with the above.

    #2
    Unless you have amended the standard Articles of the RTM Company, directors must make decisions collectively (12) and you are not entitled to participate in the decision making due to a conflict of interest (19).

    So in answer to your questions,
    1 You are not authorised to complete the LPE1 form without authority from other directors,
    2 No and now that you have been notified of proposed amendments, you have a duty to consider and deal with those amendments,
    3 You need to discuss the matter with the other directors, understand their objections and try to reach an agreement in order to move forward. Try an informal meeting over a drink or suggest some form of mediation but you should avoid legal action if at all possible, that is very much a last resort when you have all failed to be sensible and it is not in any of your interests.

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      #3
      In this situation it would be preferable if the other directors complete the LPE1 or all three sign.

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        #4
        I hope the LPE1 form shows the correct ground rent and service charge and there are no arrears of payment owing by you ?

        Since the buyer's solicitor only requires 2 directors to sign, and you can be one of them, it only requires one other director to sign. So offer to pay £100 for the LPE1 form signed by 2 directors ( £50 each to director ) or £33 each ( if signed by 3 directors )..

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          #5
          thanks for responses. Just an update, so the directors only replied to my solicitor and they are saying I owe £400 for so called old service charges to one of the directors of the RTM company (ex freeholder who sold). I dispute this is the case as my account was in credit by approx. £1000 on transfer of the freehold. This ex freeholder did not refund me this money but transferred it to the new freeholder and refunded himself and the other flat.

          I have paid him the old service charges as he has me over a barrel.

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            #6
            Now the same director is bringing up maintenance issues that involve dismantling my flat internally (e.g. removing all kitchen units and installing upvc vinyl behind kickboards and under washing machine to prevent any future potential leaks to flat below). Clearly this will lose me the sale and my existing tenant to complete. He wont sign the LPE1 form until such issues are resolved. I feel such demands at the last minute are unreasonable. The other director wont sign until he signs. Im stuck again. Any further advice would be greatly appreciated.

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