Old managing agents accounts

[jazzythumper]

Since obtaining the RTM and changing the managing agent, we have never been given full accounts / receipts for the previous year(s). We believe that as the old freeholder and leaser holder of one of the flats were represented by the same solicitor that prior to the sale of the freehold, we were subsidising their service charge as we no up until the sale of both they were in significantly behind in payments.

Is there anything we can do to compel the old managing agent / freeholder to provide this information?

[Gordon999]

I suggest you apply to the local Magistrates Court for an order on the previous MA to provide the summary of service charges .

The RTM has powers to administer the service charge after hand over date going forward. But the period before handover , the service charge was under the previous MA, who should be held accountable .

[jazzythumper]

Thanks, how would I do that, what evidence would I need to provide?

[Gordon999]

You could show the last service charge demanded by previous managing agent . There should be a final summary of the service charge account.to show the unspent funds.

[jazzythumper]

Thanks, I’m not sure that has been provided, if it hasn’t can we force them to produce this?

Would it be a simple case of sending a letter with a timescale to respond and if not received followed by the magistrates route?

[jazzythumper]

So the only statement we have shows, the significant arrears of the aforementioned leaseholder, the only accounts we have ever received at handover were the balances and arrears of each leaseholder. This was never accounted for against actual costs. I presume we should have had this information. Can we still compel the old management company to provide this?

[eagle2]

You do not appear to hold sufficient information to make a claim against the freeholder at this stage. I suggest that you apply to the FTT to challenge the charges. You would then be able to ask the Tribunal to direct the freeholder to disclose further information.

[jazzythumper]

As in a simple application to the old managing agent Or freeholder? Which one?

To provide all accounts and payments based on the fact that we disagree with the charges? How far back can we go? And does having paid the service charges mean we have agreed to these?

Thanks for your help, Jazzy

[jazzythumper]

would this be a good starting point?

https://www.lease-advice.org/faq/how...eing-used-for/

[eagle2]

I suggest that you apply to or take action against the freeholder directly, the agent is only acting on behalf of the freeholder. If you think that the freeholder is likely to supply information, you can ask him to volunteer it otherwise you will apply to the Tribunal. If he is unlikely to volunteer information, I suggest that you apply to the Tribunal and then apply for directions. You can go back 6 years and requesting the service charge accounts and supporting documents is a good starting point. If the lease requires other information to be supplied eg certificates you can add those to your list, Payment of the charges does not normally prevent you from challenging them unless you have actually agreed those charges,

[jazzythumper]

Does it matter that it has been more than six months since the RTM took control? Does it matter than the freeholder who I would like to see these accounts from sold the freehold more than 6months ago? Is there a standard template or form I could use to write to the previous freeholder?

Any help you can give is really appreciated.

[eagle2]

The sale of the freehold is relevant, your claim would be against the current freeholder, who may not possess and may be unable to obtain the information which you require. It would be up to the new freeholder to try to recover monies from the previous freeholder The RTM Company is only relevant to the extent that it is responsible for the costs since it took over the management duties.

[jazzythumper]

eagle2,

Since we have no reconciliation accounts, and the old managing agent didn’t pass on any account or funds to us, we have no way of knowing whether the debt was wiped with the sale of the freehold which I suspect it was. Sadly I don’t think it seems there is any way tl
find this info out?

[eagle2]

Unless the handover took place at the end of the financial year, it is the RTM's responsibility to produce the annual accounts. You could try making a formal complaint against the agent to supply copies of all supporting documents, it should belong to a redress scheme. The difficulty is that the agent acts on behalf of the freeholder and you have no direct relationship with the agent, but there is nothing to lose if all else has failed.

[Gordon999]

A group of leaseholders in your block should jointly make an application to the FTT against the previous MA for judgement on the service charge account for the 3 year period before RTM commencement . The FTT will force the previous MA to produce those records.