Landlord and Tenant - Level 3 Flashcards
What are the key changes in Commonhold and Leasehold Reform Act 2002?
- Gives leaseholders the right to acquire the Right to Manage
Give an example of when statute can override contract law?
.
Define a convenant
A provision or promise made by a party to a lease or deed.
What is the case of OM Property Management Ltd Vs Burr 2013?
Mr Burr said he was not liable to pay the gas charges as the demand hadnt been collected, within 18 months of cost being incurred (2000-2007). But he was liable to pay because the demand had been issued within 18 month of the incurred cost being notified (receving invoice in 2007).
Define a statutory instrument
Forms of legislation which allow provisions of an Act to be brought into force or altered without a new act being passed.
What is Section 27(a) LTA 1985?
Allows for leaseholders and landlords to apply to the FTT to determine whether service charge is payable and who is liable. E.g. demand without name and address of landlord is a breach of Section 47 of LTA 1987, thus demands were invalid so not yet payable.
What is Section 42 and 42(a) LTA 1987?
tenants of two or more dwellings may be required to pay service charges and (a) service charge must be held in a designated account
What may a lease say in relation to accounting?
It will determine the process that is to be followed;
- Independent chartered accountant
- certified accounts
- minimum standards for SC YE Accounts are set out in TECH 03/11
What is TECH 03/11?
Guidance issued jointly by RICS, ARMA and ICAEW on accounting and reporting in relation to SC accounts relased by the Institute of Chartered Accountants England and Wales.
How can case law vary Section 20(b) LTA 1985?
OM Property Management Vs Burr - 18 months from when the costs are incurred - not works done but invoice received.
What is the LTA process?
- LH provides application; Scope and plans
- LL appoints professional team and fees are agreed.
- BS carries out inspection and produces report to advise LL
- LL and LH agree final approved plans and licence
- Parties sign the licence and works can commence.
- There are 2 further inspections by the BS and he will sign the works off at the end.
What is a mutual enforceability clause?
A mechanism in a lease which allows a tenant to enforce lease convenants on other tenants in the building, via the landlord.
What is an absolute covenant?
A covenant is a lease with bans/prohibits a party from doing something.
What is the case of Duval Vs 11-13 Randolph Crescent Ltd 2020 and how does it affect LTAs?
- There was an absolute covenant and MEC in a lease. A LH gained permission from the landlord to carry out works, which created waste and breached an absolutely covenant. The MEC allowed another LH to get the LL to enforce the absolute covenant. Affects LTAs e.g. flooring.
What is the procedure you advised leaseholders to follow to ensure adequate sound proofing was laid?
- Testing 2. Design Criteria by competent acoustic specialist 3. testing
What is an example of a user covenant?
‘for use for the occupation of one family’ / ‘for the use as a private residence’
How does Airbnb invalidate building insurance?
The policy may not cover damage caused by rentals.
What is the case of Nemcova Vs Fairfield Rents 2016?
- AirBnB ruling
- lease said ‘for any purpose whatsoever other than as a private residence’
- breach of covenant
When can you serve a Notice of Breach S146 Notice?
Under Commonhold and Leasehold Reform 2002 Act,
- breach has been agreed/admitted by tenant
- the breach has been ‘finally determined’ by the FTT - not appealed.
What has Commonhold and Leasehold Reform Act 2002 amended?
- Leasehold Reform 1967
2. Leasehold Reform, Housing and Urban Development Act 1993
What is forfeiture?
Granting back to the landlord the right to re-enter. It is not legal to forfeit a lease without going through the court.
When cant a landlord serve a Section 146 notice?
when a leaseholder has breached for non-payment, unless a) over £350 and b) unpaid for 3 years.
What has to happen before a 146 notice is served?
- breach has been agreed/admitted by tenant
2. the breach has been ‘finally determined’ by the FTT - not appealed.
For the Hempel Collection AirBnB case, did you serve a Section 146 Notice?
No, the leaseholder remedied the breach is a reasonable length of time and cant serve a notice unless;
- breach has been agreed/admitted by tenant
- the breach has been ‘finally determined’ by the FTT - not appealed.
was the leaseholder granted permission to lay wooden flooring?
yes because the lease stated that regulations could be altered if necessary? And the covenant to comply with regulations in the lease stated the landlord could modify or waive the regulaitons in their absolute discretion
What is the Act that MEES Regulations come under?
The Energy Efficiency (Private Rented Property)(England and Wales) Regulations 2015.
What is MEES?
Minimum Level of Energy Efficiency Standards - came into effect on 1 April 2018 to regulate the letting of private residential and commerical properties and restick landlord from letting properties with substandard energy efficiencies.
What are the penalties that landlord would receive if the property was not up to standard?
The local authority can fine up to £5,000 per property
What is the minimum rating and from when?
Rating of E and from 1st April 2018 for new tenancies and 1st April 2020 for existing tenancies
What Act ensures properties are fit for living?
The Homes (Fitness for Human Habitation) 2018 - came into effect on 20th March 2019. Amends the existing LTA 1985 It introduces implied covenants into tenacies to ensure the property it fit to live in.
What tenancies does the Homes (Fitness for Human Habitation) not apply to?
- leases for seven years or longer
- licences
- agricultural tenancies
What kind of licences may a landlord need to hold to let their property?
HMO - mandatory licence under Section 254 Housing Act 2004.
What is the Heat Network (Metering and Billing) Regulations 2014?
Introduced in November 2014 to govern energy efficiency. It relates to the use of communal heating systems
How do you vet a contractor?
- SafeContractor
- Check of solvency
- assuance that they have the necessary skills and qualifications
- Customer references, bank references, certificates e.g. GasSafe and copies of employer’s liaiblity and 3rd party insurance cover.
What is Section 22 LTA 1987?
Application (by tenant) to appoint a managing agent
What is Section 22 LTA 1987 involve?
Tenant serves notice on their landlord prior to applying to the FTT to determine the appointment of a manager. The notice will includes the grounds on why the tenant wishes to serve the notice.
What is Section 24 of LTA 1987?
Appointment of a Managing Agent (by Order)
What is Section 24 of LTA 1987 involve?
Allows the tribunal to appoint a new manager
What is Section 35 of LTA 1987?
Right for a party to vary a lease
What does Section 35 of LTA 1987 involve?
- Allows any party to make an application to the FTT to vary a lease
- If the lease fails to make satisfactory provision with respect to one or more of these;
- the repair and maintenance of a flat
- the insurance of the building
- the repair and maintenance of any installations
- the provision of any services which are considered reasonably necessary for a reasonable standard of accommodation
- the recovery by one party of expenditure incurred
What is Section 36 of LTA 1987?
application to vary other residents’ leases
What does Section 36 of LTA 1987 involve?
when a action under section 35 is taken, then a party to the lease can apply to vary another lease specified in the application.
What is Section 37 of LTA 1987?
Application to vary lease by a majority of leaseholders
What is Section 38 of LTA 1987?
Court order to vary a lease
What does Section 38 of LTA 1987 involve?
If an agreement for a variation isnt reached, the FTT may by order direct that a memorandum of any variation of a lease.
What is Section 42 LTA 1987?
Service charge funds to be held in a trust
What does Section 42 LTA 1987 involve?
tenants of two or more dwellings may be required to pay service charges
What is Section 42a LTA 1987?
service charge must be held in a designated account
What does Section 42a LTA 1987 involve?
the landlord must hold any sums of money of any trust fund in a designated account at a relevant financial instituation
What is Section 42B of LTA 1987?
Penalties for failure to comply with S42A
What does Section 42B of LTA 1987 involve?
If a landlord does not comply with S42A with are convicted with a fine.
What is Section 47 of LTA 1987?
The Landlord name and address must be included on demands for payment
What does Section 47 LTA 1987 involve?
Any written demand given to the tenant, the name and address of the landlord (in England and Wales). If the landlord’s address is not in England or Wales then an address in Eng or Wales on which the tenant can served notices to the landlord.
What is Section 18 of LTA 1985?
definition of service charge
What does Section 18 of LTA 1985 involve?
the amount payable by a tenant in addition to rent for service charge, repairs, maintenance, improvements or insurance or landlord’s management costs
What is Section 19(1a) of LTA 1985?
Service charges must be reasonably incurred
What does Section 19(1a) of LTA 1985 involve?
service charges are only recoverable from tenants if they are reasonably incurred e.g. Regents Management Limited Vs Jones (2010)
What is Section 19(1b) of LTA 1985?
services or works must be of a reasonable standard
What does Section 19(1b) of LTA 1985 involve?
service charges can only be recovered from residential tenants if the works are of a reasonable standard
What is Section 20 of LTA 1985?
consultation on qualifying works to a building and qualifying long term agreements
What is Section 20B of LTA 1985
the 18-month rule
What does Section 20B of LTA 1985 involve?
the leaseholder is not liable for payment of a service charge cost unless;
- a landlord sends the demand within 18 months of a cost being incurred
- a landlord notifies a leaseholder in writing within the same 18 month period that a cost has been incurred, amount of that costs, and they will be required to pay the cost at a later date (S20B notice)
What is Section 20C of LTA 1985?
limitation of a landlords legal costs
What does Section 20C of LTA 1985 involve?
allows a leaseholder to make an application to the court or tribunal to request that an Order be made stopping a Landlord recharging their legal costs through service charge
What is Section 21 of LTA 1985?
service charge information
What does Section 21 of LTA 1985 involve?
allows a tenant to request a landlord to provide a summary of service charge costs. Once the request is received the Landlord must provide the information within one month, or 6 months of year end, whichever is later.
What is Section 21B of LTA 1985?
notice to accompany demands for service charges
What does Section 21B of LTA 1985 involve?
a demand of payment of service charge must be accompanied by a summary of the rights and obligations of tenants of dwellings in relation to service charge. If the notice is not attached the demand is not enforceable.
What is Section 22 of LTA 1985?
right to review supporting documentation
What does Section 22 of LTA 1985 involve?
gives tenants the right to request summary of expenditure and other supporting documents and allow tenants to have a copy
What is Section 27A of LTA 1985?
Application to determine reasonableness
What does Section 27A of LTA 1985 involve?
allows tenants to apply to the FTT to determine the reasonableness of service charge
What is Section 30A of LTA 1985?
summary of insurance
What does Section 30A of LTA 1985 involve?
allows tenants to request a copy of their insurance policy - free of charge.
What is Setction 29 of LTA 1985?
sets out recognition procedures for residents’ associations
What is Section 30B of LTA 1985?
right to be consulted about the role of an appointed managing agent
What are administration charges?
an amount payable by a leaseholder of a dwelling as part of the rent in connection to;
- grant of approval
- breach
- late payment
What are some examples of administration charges?
- applications for consent/subletting/alterations
- charges for non-payment
- charges for consent to assign
Where is the definition of Administration Charges found?
Schedule 11 of Commonhold and Leasehold Reform Act 2002
In relation to Administration Charges, What can the tribunal do?
It depends;
- If AC are fixed by lease - tribunal can vary lease if unreasonable
- Variable - tribunal will determine whether charges are reasonable
What is general good practice for RMC directors meeting?
- Reasonable hours/place
- Agenda prior to meetin
- Minutes issued promptly
- Elected chairman
- Regular meetings held at appropriate times of the year
What is the role of the chairman in a meeting?
- To encourage active debate;
- Ensure meeting starts on time
- Keep focused on the agenda
What will a good chairman do?
- Read meeting paper so they are aware of matters to be raised at meeting
- Arrive early to greet members
- Listen to what others say
- Question and challenge but be supportive
What are Memorandums for a Company?
Detail the company’s relationships with third parties
What are Articles of Association?
Govern the internal management of the company
What is an AGM?
Annual General Meeting - gives all members an opportunity to attend and speak
Is it essential that an AGM is held?
- Companies formed before 2006 - Yes unless Arts altered by Special Resolution
- Companies formed after 2006 - No if they use the typical Model Articles.
What is included in an AGM Notice?
- Date/time/place of AGM
- Business to be discussed at meeting
- Proxy form
When should an AGM notice be served?
1 month prior to the meeting, proxy forms should be returned 48 hours before meeting
What are the different types of resolution?
- Ordinary Resolutions - majority
- Special Resolutions - 75%
- Extraordinary Resolutions - used when winding up a company
- Elective Resolution - unanimous agreement
How do you file a resolution?
Every special, extraordinary resolution, elective resolution/written resolution must be sent to the Registrar of Companies at Companies House within 15 days of the resolution being passed.
