Leasehold and Freehold Reform Act 2024

Rights relating to estate management charges

78 Demands for payment

(1) A person may not demand the payment of an estate management charge unless the demand—

(a) is in the specified form,

(b) contains the specified information, and

(c) is provided in a specified manner.

“Specified” means specified in regulations made by the Secretary of State.

(2) Accordingly, where a demand for payment of an estate management charge does not comply with subsection (1), a provision of a deed, lease, contract or other arrangement or instrument relating to non-payment or late payment of estate management charges does not have effect in relation to that charge.

(3) The Secretary of State may by regulations provide for exceptions from subsection (1) by reference to—

(a) descriptions of person making the demand;

(b) descriptions of estate management charge;

(c) any other matter.

(4) A statutory instrument containing regulations under this section is subject to the negative procedure.

79 Annual reports

(1) Subsection (2) applies where—

(a) an estate manager carries out estate management, and

(b) an owner of the managed dwelling is or may be required to pay estate management charges in respect of the management carried out.

(2) The estate manager must, on or before the report date for an accounting period, provide the owner with a report under this section.

(3) The Secretary of State may by regulations make provision as to—

(a) the information to be contained in the report;

(b) the form of the report;

(c) the manner in which the report is to be provided.

(4) An “accounting period” is—

(a) a period of 12 months agreed between the estate manager and the owner for the purposes of this section, or

(b) if no such period is agreed, a period of 12 months beginning with 1 April.

(5) The “report date” for an accounting period is the final day of the period of one month beginning with the day after the final day of the accounting period.

(6) The Secretary of State may by regulations provide for exceptions from the duty in subsection (1) by reference to—

(a) descriptions of estate manager;

(b) descriptions of estate management charge;

(c) any other matter.

(7) A statutory instrument containing regulations under this section is subject to the negative procedure.

80 Right to request information

(1) An owner of a managed dwelling may require an estate manager carrying out estate management in relation to the dwelling to provide information specified in regulations made by the Secretary of State.

(2) The Secretary of State may specify information only if it relates to estate management.

(3) The estate manager must provide the owner with any of the information requested that is within their possession.

(4) The estate manager must request information from another person if—

(a) the information has been requested from the estate manager under subsection (1),

(b) the estate manager does not possess the information when the request is made, and

(c) the estate manager believes that the other person possesses the information.

(5) That person must provide the estate manager with any of the information requested that is within their possession.

(6) A person (“A”) must request information from another person (“B”) if—

(a) the information has been requested from A under subsection (4) or this subsection,

(b) A does not possess the information when the request is made, and

(c) A believes that B possesses the information.

(7) B must provide A with any of the information requested that is within B’s possession.

(8) The Secretary of State may by regulations—

(a) provide for how a request is to be made under this section;

(b) provide that a request under this section may not be made until the end of a particular period, or until another condition is met;

(c) make provision as to the period within which a request under subsection (4) or (6) must be made;

(d) provide for circumstances in which a duty to comply with a request under this section does not apply.

(9) Section 81 makes further provision about requests under this section.

(10) A statutory instrument containing regulations under this section is subject to the negative procedure.

81 Requests under section 80: further provision

(1) Subsections (2) to (6) apply where a person (“R”) requests information under section 80 from another person (“P”).

(2) R may request that P provide the information to R by allowing R access to premises where R may inspect the information and make and remove a copy of the information.

(3) P must provide information which P is required to provide under section 80—

(a) before the end of a specified period beginning with the day the request is made, and

(b) if R has made a request under subsection (2), by allowing R the access requested during a specified period.

“Specified” means specified in regulations made by the Secretary of State.

(4) P may charge R for the costs of doing anything required under section 80 or this section.

(5) But, if P is an estate manager, P may not charge an owner of a managed dwelling for the costs of allowing the owner access to premises to inspect information (but may charge for the making of copies).

(6) The costs referred to in subsection (4) may be relevant costs for the purposes of an estate management charge (whether charged to an owner of that dwelling or another dwelling).

(7) Regulations under subsection (3) may provide for circumstances in which a specified period is to be extended.

(8) The Secretary of State may by regulations make further provision as to how information requested under section 80 is to be provided.

(9) A statutory instrument containing regulations under this section is subject to the negative procedure.

82 Enforcement of sections 78 to 81

(1) An owner of a managed dwelling may make an application to the appropriate tribunal on the ground that—

(a) a person demanded the payment of an estate management charge otherwise than in accordance with section 78(1);

(b) an estate manager failed to provide a report in accordance with section 79.

(2) On an application made under subsection (1), the tribunal may make one or more of the following orders—

(a) an order that an estate manager must, before the end of the period of 14 days beginning with the day after the date of the order—

(i) demand the payment of an estate management charge in accordance with section 78(1);

(ii) provide a report in accordance with section 79;

(b) an order that an estate manager pay damages to the owner for the failure;

(c) any other order which the tribunal considers consequential on an order under paragraph (a) or (b).

(3) A person (“C”) may make an application to the appropriate tribunal on the ground that another person (“D”) failed to comply with a requirement under section 80 or 81.

(4) On an application made under subsection (3), the tribunal may make one or more of the following orders—

(a) an order that D comply with the requirement before the end of the period of 14 days beginning with the day after the date of the order;

(b) an order that D pay damages to C for the failure;

(c) any other order which the tribunal considers consequential on an order under paragraph (a) or (b).

(5) Damages under this section may not exceed £5,000.

(6) The appropriate authority may by regulations amend the amount in subsection (5) if the appropriate authority considers it expedient to do so to reflect changes in the value of money.

(7) A statutory instrument containing regulations under this section is subject to the negative procedure.