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Areas of Law

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Leasehold Enfranchisement

Property Management Law

The right

Property management law is a complex matter and a common complaint of tenants is that their property has been badly managed.

In situations where tenants are dissatisfied with the management of the property, either by their landlord, the managing agents appointed by the landlord, or by the Right to Manage Company, the Property Chamber has a power to appoint a manager and/or receiver.

The power to appoint a manager “for cause” i.e. where there has been specific default on the part of the existing manager/landlord, is to be contrasted with the RTM provisions where the conduct of the existing management is irrelevant.

The procedure

The property management law process to be followed by tenants wishing to have the Property Chamber appoint a manager begins by giving a notice to the landlord, setting out the nature of the problem. The landlord must then be given the opportunity to remedy the problem. If he fails to do so, then an application may be made to the Property Chamber for the appointment of a manager.

Provision is also made for dispensing with service of the notice in appropriate cases.

The grounds

The grounds on which a Property Chamber may appoint a manager are set out in statute. If one or more of the statutory grounds are made out, the Property Chamber is empowered to appoint a manager on such terms as it thinks fit. The manager is not limited to carrying out functions of the landlord under the lease and they may be given power over property which was not part of the premises being managed before the appointment.

The role of the manager/receiver

The appointment of a manager is a very flexible power which can be used to remedy a wide variety of problems. However a Property Chamber appointed manager will be a neutral party under the law. The manager will not do the bidding of either the lessees or the landlord but will manage the property in the best interest of all the parties. Tenants who wish to have a more “hands on” role may well consider the RTM process is a better option for them.

Property Chamber’s regard the decision to “strip the landlord or his right to maintain his own building” as draconian and not be invoked lightly. The process is complex.

If you would like to discuss your case with one of our leasehold enfranchisement team, please contact:


 

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