Commonhold and Leasehold Reform Bill [H.L.] - continued        House of Lords
PART II, LEASEHOLD REFORM - continued
Exercising right - continued

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Enforcement of tenant covenants.     97. - (1) This section applies in relation to the enforcement of untransferred tenant covenants of a lease of the whole or any part of the premises.
 
      (2) Untransferred tenant covenants are enforceable by the RTM company, as well as by any other person by whom they are enforceable apart from this section, in the same manner as they are enforceable by any other such person.
 
      (3) But the RTM company may not exercise any function of re-entry or forfeiture.
 
      (4) In this Chapter "tenant covenant", in relation to a lease, means a covenant falling to be complied with by a tenant under the lease; and a tenant covenant is untransferred if, apart from this section, it would not be enforceable by the RTM company.
 
      (5) Any power under a lease of a person who is-
 
 
    (a) landlord under the lease, or
 
    (b) party to the lease otherwise than as landlord or tenant,
       to enter any part of the premises to determine whether a tenant is complying with any untransferred tenant covenant is exercisable by the RTM company (as well as by the landlord or party).
 
Tenant covenants: monitoring and reporting.     98. - (1) This section applies in relation to failures to comply with tenant covenants of leases of the whole or any part of the premises.
 
      (2) The RTM company must-
 
 
    (a) keep under review whether tenant covenants of leases of the whole or any part of the premises are being complied with, and
 
    (b) report to any person who is landlord under such a lease any failure to comply with any tenant covenant of the lease.
      (3) The report must be made before the end of the period of three months beginning with the day on which the failure to comply comes to the attention of the RTM company.
 
      (4) But the RTM company need not report to a landlord a failure to comply with a tenant covenant if-
 
 
    (a) the failure has been remedied,
 
    (b) reasonable compensation has been paid in respect of the failure, or
 
    (c) the landlord has notified the RTM company that it need not report to him failures of the description of the failure concerned.
Statutory functions.     99. - (1) Schedule 7 (provision for the operation of certain enactments with modifications) has effect.
 
      (2) Other enactments relating to leases have effect with any such modifications as are prescribed by regulations made by the appropriate national authority.
 
Landlord contributions to service charges.     100. - (1) This section applies where-
 
 
    (a) the premises contain at least one flat or other unit not subject to a lease held by a qualifying tenant (an "excluded unit"),
 
    (b) the service charges payable under leases of flats contained in the premises which are so subject fall to be calculated as a proportion of the relevant costs, and
 
    (c) the proportions of the relevant costs so payable, when aggregated, amount to less than the whole of the relevant costs.
      (2) Where the premises contain only one excluded unit, the person who is the appropriate person in relation to the excluded unit must pay to the RTM company the difference between-
 
 
    (a) the relevant costs, and
 
    (b) the aggregate amount payable in respect of the relevant costs under leases of flats contained in the premises which are held by qualifying tenants.
      (3) Where the premises contain more than one excluded unit, each person who is the appropriate person in relation to an excluded unit must pay to the RTM company the appropriate proportion of that difference.
 
      (4) And the appropriate proportion in the case of each such person is the proportion of the internal floor area of all of the excluded units which is internal floor area of the excluded unit in relation to which he is the appropriate person.
 
      (5) The appropriate person in relation to an excluded unit-
 
 
    (a) if it is subject to a lease, is the landlord under the lease,
 
    (b) if it is subject to more than one lease, is the immediate landlord under whichever of the leases is inferior to all the others, and
 
    (c) if it is not subject to any lease, is the freeholder.
 
Supplementary
Registration.     101. - (1) In section 49(1) of the Land Registration Act 1925 (rules to provide for rights, interests and claims to be protected by notice), insert at the end-
 
 
    "(l) the right to manage being exercisable by a RTM company under Chapter I of Part II of the Commonhold and Leasehold Reform Act 2001."
      (2) In section 64 of that Act (production of certificates for noting on certain dealings etc.), insert at the end-
 
 
    "(8) Subsection (1) above shall also not require the production of the land certificate or of any charge certificate when a person applies for the registration of a notice in respect of the right to manage being exercisable by a RTM company under Chapter I of Part II of the Commonhold and Leasehold Reform Act 2001."
 
      (3) After section 111 of that Act insert-
 
 
"Caution relating to right to manage.     111A. A caution may be lodged under section 53 of this Act in respect of the right to manage being exercisable by a RTM company under Chapter I of Part II of the Commonhold and Leasehold Reform Act 2001."
 
Cessation of management.     102. - (1) This section makes provision about the circumstances in which, after a RTM company has acquired the right to manage any premises, that right ceases to be exercisable by it.
 
      (2) Provision may be made by an agreement made between-
 
 
    (a) the RTM company, and
 
    (b) each person who is landlord under a lease of the whole or any part of the premises,
       for the right to manage the premises to cease to be exercisable by the RTM company.
 
      (3) The right to manage the premises ceases to be exercisable by the RTM company if-
 
 
    (a) a winding-up order or an administration order is made, or a resolution for voluntary winding up is passed, with respect to the RTM company,
 
    (b) a receiver or a manager of the RTM company's undertaking is duly appointed, or possession is taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the RTM company comprised in or subject to the charge,
 
    (c) a voluntary arrangement proposed in the case of the RTM company for the purposes of Part I of the Insolvency Act 1986 is approved under that Part of that Act, or
 
    (d) the RTM company's name is struck off the register under section 652 or 652A of the Companies Act 1985.
      (4) The right to manage the premises ceases to be exercisable by the RTM company if a manager is appointed under Part II of the 1987 Act to act in relation to the premises, or any premises containing or contained in the premises.
 
      (5) The right to manage the premises ceases to be exercisable by the RTM company if it ceases to be a RTM company in relation to the premises.
 
Enforcement of obligations.     103. - (1) The court may, on the application of any person interested, make an order requiring a person who has failed to comply with a requirement imposed on him by, under or by virtue of any provision of this Chapter to make good the default within such time as is specified in the order.
 
      (2) An application shall not be made under subsection (1) unless-
 
 
    (a) a notice has been previously given to the person in question requiring him to make good the default, and
 
    (b) more than 14 days have elapsed since the date of the giving of that notice without his having done so.
 
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