Not sure how this Clause will work post RTM

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    Not sure how this Clause will work post RTM

    Screen Shot 2022-01-16 at 00.40.06.png

    Is an audit still required? If so, can the account be audited by the Leaseholders chosen auditors?

    #2
    It must be an older type of lease, more modern leases do not refer to an audit. In modern day language, it means that the service charge accounts should be reviewed by an independent accountant.

    The RTM Company must comply with the lease and it may choose the accountant.

    Comment


      #3
      The service charge account holds money contributed by leaseholders who should be given an annual summary of income and expenditure for the year. Auditing by qualified accountant is a requirement if there are more than 4 leaseholders in the block of flats.

      But in larger block of flats, auditing should be required especially if the service charge account is controlled by a managing agent appointed by an external company .

      Comment


        #4
        Originally posted by eagle2 View Post
        It must be an older type of lease, more modern leases do not refer to an audit. In modern day language, it means that the service charge accounts should be reviewed by an independent accountant.

        The RTM Company must comply with the lease and it may choose the accountant.
        ok yes the meaning of audit is different now to what was meant when these leases were first drawn up in the 1970's. So just normal accountant. Thanks for your help.

        Comment

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