Preparation of landlord’s proposal
4.—(1) The landlord shall prepare, in accordance with the following provisions of this paragraph, a proposal in respect of the proposed agreement.
(2) The proposal shall contain a statement—
(a)of the name and address of every party to the proposed agreement (other than the landlord); and
(b)of any connection (apart from the proposed agreement) between the landlord and any other party.
(3) For the purpose of sub-paragraph (2)(b), it shall be assumed that there is a connection between the landlord and a party—
(a)where the landlord is a company, if the party is, or is to be, a director or manager of the company or is a close relative of any such director or manager;
(b)where the landlord is a company, and the party is a partner in a partnership, if any partner in that partnership is, or is to be, a director or manager of the company or is a close relative of any such director or manager;
(c)where both the landlord and the party are companies, if any director or manager of one company is, or is to be, a director or manager of the other company;
(d)where the party is a company, if the landlord is a director or manager of the company or is a close relative of any such director or manager; or
(e)where the party is a company and the landlord is a partner in a partnership, if any partner in that partnership is a director or manager of the company or is a close relative of any such director or manager.
(4) Where, as regards each tenant’s unit of occupation, it is reasonably practicable for the landlord to estimate the relevant contribution to be incurred by the tenant attributable to the relevant matters to which the proposed agreement relates, the proposal shall contain a statement of that contribution.
(5) Where—
(a)it is not reasonably practicable for the landlord to make the estimate mentioned in sub-paragraph (4); and
(b)it is reasonably practicable for the landlord to estimate, as regards the building or other premises to which the proposed agreement relates, the total amount of his expenditure under the proposed agreement,
the proposal shall contain a statement of the amount of that estimated expenditure.
(6) Where—
(a)it is not reasonably practicable for the landlord to make the estimate mentioned in sub-paragraph (4) or (5)(b); and
(b)it is reasonably practicable for the landlord to ascertain the current unit cost or hourly or daily rate applicable to the relevant matters to which the proposed agreement relates,
the proposal shall contain a statement of that cost or rate.
(7) Where it is not reasonably practicable for the landlord to make the estimate mentioned in sub-paragraph (6)(b), the proposal shall contain a statement of the reasons why he cannot comply and the date by which he expects to be able to provide an estimate, cost or rate.
(8) Where the relevant matters comprise or include the proposed appointment by the landlord of an agent to discharge any of the landlord’s obligations to the tenants which relate to the management by him of premises to which the agreement relates, each proposal shall contain a statement—
(a)that the person whose appointment is proposed—
(i)is or, as the case may be, is not, a member of a professional body or trade association; and
(ii)subscribes or, as the case may be, does not subscribe, to any code of practice or voluntary accreditation scheme relevant to the functions of managing agents; and
(b)if the person is a member of a professional body trade association, of the name of the body or association.
(9) Each proposal shall contain a statement of the intended duration of the proposed agreement.
(10) Where the landlord has received observations to which (in accordance with paragraph 3) he is required to have regard, the proposal shall contain a statement summarising the observations and setting out the landlord’s response to them.