RIGHT TO MANAGE PROCEDURE AND TIME SCALES

There are time critical actions that must be undertaken in order for the Right to Manage company to take over the management of the building.

Actions and Timescales

Action Leaseholder Action Landlord Action
Contact the other leaseholders informing them of your intention to acquire the right to manage and Obtain the support of at least 50% of the qualifying leaseholders
Once the necessary 50% support has been obtained contact Brighton Company Formations and Incorporate RTM company
Issue Section 78 notice of participation on flat owners and The flat owners have 14 days to reply; at least 50% of qualifying owners must accept
Issue, if necessary, Section 82 right to information requesting information from landlord in order to take over the management Landlord has 28 days to provide the information
Once 14 days has elapsed after the issue of S 78 notice and more than 50% acceptance issue S 79 claim notice on the landlord S 79 notice to landlord specifies determination date - min 28 days after issuing S 79; and acquisition date min 4 months after issuing S 79 S 84 counter notice sent by landlord by determination date. If landlord does not complete S 84 then RTM company automatically takes over the management from acquisition date
Landlord could dispute the validity of the claim to Right to Manage The RTM company has 60 days to apply to leasehold valuation tribunal (LVT). If LVT agrees with RTM company the date of acquisition is three months from the date of the tribunal’s judgement.
S 83 right of access notice is optional and informs landlord that you wish to inspect the property. Right of access must be at least 10 days after S 83 right of access notice landlord might also request access under S 83
S 83 right of access notice is optional and informs landlord that you wish to inspect the property. Right of access must be at least 10 days after S 83 right of access notice landlord might also request access under S 83
Following the date of acquisition the following occurs
S 92 notice served on landlord Landlord notifies all contractors to the property that the RTM has acquired the building and notifies the RTM of all existing contracts as soon as possible after the date of acquisition is set
S 93 duty to provide information is served on the landlord S 93 asks for management information relation to the property. Information must be given within 28 days after the notice is issued. Notice cannot be issued before the date of acquisition
S 94 notice served on landlord S 94 requires that as soon as possible after the date of acquisition the nett balance of any service charges is sent to the RTM. Proper outstanding costs can be deducted before the transfer.

Summary

  1. OBTAIN AT LEAST 50% SUPPORT FROM LEASEHOLDERS
  2. INCORPORATE RTM
  3. S 78 INVITE OTHER LEASEHOLDERS TO JOIN
  4. S 82 REQUEST INFORMATION FROM LANDLORD
  5. S 79 NOTIFY LANDLORD OF CLAIM BY RTM
  6. S 83 NOTIFY LANDLORD RE ACCESS TO BUILDING
  7. S 92 LANDLORD NOTIFIES CONTRACTORS
  8. S 93 REQUEST INFORMATION TO MANAGE BUILDING
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