Commonhold and Leasehold Reform Bill [H.L.] -
Amendments to be debated in the House of Lords
- continued
House of Lords

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Clause 83
 
  
BY THE LORD KINGSLAND
 
145     Page 38, line 11, leave out ("A") and insert ("An") 
145A     Page 38, line 21, at end insert--
 
    (  )  Where a claim notice is withdrawn for any reason, no further claim to acquire the right to manage may be made in respect of the premises until the expiry of the service charge year following the service charge year in which the claim was made.")
 
  
Clause 84
 
  
BY THE LORD KINGSLAND
 
146     Page 38, line 22, leave out ("a") and insert ("an") 
  
Clause 85
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
     The above-named Lords give notice of their intention to oppose the Question that Clause 85 stand part of the Bill. 
  
Clause 86
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
     The above-named Lords give notice of their intention to oppose the Question that Clause 86 stand part of the Bill. 
  
After Clause 86
 
  
BY THE LORD KINGSLAND
 
147     Insert the following new Clause-- 
 ("CESSATION OF RTM COMPANY RIGHTs 
     .--(1)  After an RTM company acquires the right to manage any premises, from time to time any person who is--
    (a)  a qualifying tenant,
    (b)  a tenant of any part of the premises who is not a qualifying tenant, or
    (c)  the landlord of the whole or any part of the premises (including mesne landlords) or a management company party to any lease of the premises or any part thereof who prior to the acquisition date had the right to manage the premises,
may apply to the leasehold valuation tribunal for an order that the RTM company cease to have the right to manage.
 
    (2)  The grounds on which such an application may be made are that on the date of the application--
    (a)  that where there are only two flats in the premises the tenants of both flats are not both qualifying tenants and members of the RTM company,
    (b)  if there be more than two flats in the premises the tenants of fewer than one half of all the flats in the premises are both qualifying tenants and members of the RTM company, or
    (c)  it is not just or convenient that the RTM company should continue to have the right to manage the premises.
    (3)  The application must be served on--
    (a)  the RTM company, and
    (b)  the landlord of the whole or any part of the premises (including mesne landlords) and any management company party to any lease of the premises or any part thereof who but for the RTM company's right to manage would have the right to manage the premises.
    (4)  The Secretary of State may make regulations for the procedure for such applications, including provisions as to costs.")
Cessation of RTM company rights.
  
Clause 87
 
  
BY THE LORD KINGSLAND
 
148     Page 40, line 1, leave out ("a") and insert ("an") 
148A     Page 40, line 14, leave out from ("is") to end of line 15 and insert ("a quarter day not less than three months after the date on which the determination becomes final, unless otherwise agreed by the parties") 
148B     Page 40, line 17, leave out ("the date one month") and insert ("a quarter day not less than three months") 
  
Clause 88
 
  
BY THE LORD KINGSLAND
 
149     Page 40, line 25, leave out ("a") and insert ("an") 
150     Page 40, line 44, leave out ("or tenant") and insert (", tenant or surety") 
     The Lord Kingsland gives notice of his intention to oppose the Question that Clause 88 stand part of the Bill. 
  
Clause 89
 
  
BY THE LORD KINGSLAND
 
     The Lord Kingsland gives notice of his intention to oppose the Question that Clause 89 stand part of the Bill. 
  
After Clause 89
 
  
BY THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL
 
151     Insert the following new Clause-- 
     ("  .--(1)  Upon the acquisition date previous contracts shall be null and void.
 
    (2)  The RTM company shall be under no obligation to continue contracts but the rules relating to frustrated contracts shall apply.
 
    (3)  Costs incurred at the date of frustration shall be recoverable, otherwise compensation shall not be payable.")
Duration of contracts.
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
152     Insert the following new Clause-- 
     ("  .--(1)  An existing management contract entered into after the date on which the claim notice under section 77(6) is given to the landlord may be terminated by the RTM company on not less than one month's notice unless the RTM company has agreed to the contract being entered into.
 
    (2)  Any other existing management contract may be terminated by the RTM company on not less than one month's notice if, in the opinion of the directors of the RTM--
    (a)  the consideration payable to the contractor party is excessive;
    (b)  the services to be provided or other things to be done under the contract are inappropriate; or
    (c)  the contractor party is not a fit and proper person to provide the services or do the other things required by the contract.
    (3)  Any term of a contract which provides for any compensation to be payable for the exercise by a RTM company of rights under subsection (1) or (2) is void.")
Terminations of existing management contracts.
  
BY THE LORD KINGSLAND
 
152A     Insert the following new Clause-- 
     ("  .--(1)  Where a liability exists as a result of an event prior to the acquisition date, the responsibility for that liability rests with whoever was the manager party at the time of the event.
 
    (2)  If a liability such as described in subsection (1) exists, the RTM company shall permit the former manager party and any person authorised to act on his behalf reasonable access to any relevant documentation (or, if the information is recorded in the document in a form in which it is not readily intelligible, to give any such person access to it in a readily intelligible form) which is in its control.")
Continuing liabilities.
  
Clause 90
 
  
BY THE LORD KINGSLAND
 
153     Page 42, line 26, leave out ("a") and insert ("an") 
  
BY THE EARL OF CAITHNESS
 
154     Page 42, line 47, leave out ("four") and insert ("three") 
  
BY THE LORD KINGSLAND
 
155     Page 43, line 1, leave out ("But,") 
156     Page 43, line 1, leave out ("that") and insert ("subsection (3)") 
157     Page 43, line 3, leave out ("the requirement is imposed") and insert ("he is notified of the requirement") 
  
After Clause 90
 
  
BY THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL
 
158     Insert the following new Clause-- 
     ("  .--(1)  To ensure a proper handover of management function at the acquisition date, the following procedure shall be followed.
 
    (2)  The acquisition date shall be no less than three months from the notice of claim to acquire the right to manage.
 
    (3)  From the date of a counter-notice, or a period not less than two months before the acquisition date, the landlord shall be obliged to forward all management information on a daily basis.
 
    (4)  The above procedures may be varied by agreement between the parties.")
Handover of management function.
  
Clause 91
 
  
BY THE LORD KINGSLAND
 
159     Page 43, line 4, leave out ("a") and insert ("an") 
160     Page 43, line 7, leave out ("or tenant") and insert (", tenant or surety") 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
161     Page 43, line 21, at end insert--
 
    ("(  )  Costs contingently payable under existing contracts shall be treated for the purposes of subsection (2) as having been previously incurred; but where the amount of such costs when determined is less than the amount deducted in respect of them under subsection (2), the balance shall be paid to the company as soon as is reasonably practicable.")
 
  
BY THE EARL OF CAITHNESS
 
162     Page 43, line 25, leave out ("four") and insert ("three") 
163     Page 43, leave out line 29 
  
After Clause 91
 
  
BY THE EARL OF CAITHNESS
THE LORD WILLIAMS OF ELVEL
 
164     Insert the following new Clause-- 
     ("  .--(1)  To ensure that adequate funds are available to the RTM company, the following procedure shall apply.
 
    (2)  The acquisition date shall be no less than three months from the notice of claim to acquire the right to manage.
 
    (3)  At the acquisition date the landlord must hand over all uncommitted service charges and in the event that further incurred expenditure becomes apparent, but not taken into account by the landlord, it shall be the duty of the RTM company to meet this expenditure subject to it being reasonably incurred.
 
    (4)  The above procedures may be varied by agreement between the parties.")
Funds.
  
Clause 92
 
  
BY THE LORD KINGSLAND
 
165     Page 43, line 32, leave out ("a") and insert ("an") 
  
Clause 93
 
  
BY THE LORD KINGSLAND
 
166     Page 43, line 39, leave out ("or tenant") and insert (", tenant or surety") 
167     Page 44, line 1, leave out ("or tenant") and insert (", tenant or surety") 
167A     Page 44, line 5, leave out ("and management") and insert (", health and safety, management and compliance with all relevant statutory provisions and guidance") 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
168     Page 44, line 7, leave out paragraph (a) 
  
Clause 94
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
169     Page 44, line 15, at end insert--
 
    ("(  )  Where under subsection (1) the RTM company owes to a person who is landlord under the lease with respect to repairs, the company shall (except in relation to any right of re-entry or forfeiture) be deemed to be a lessee of that person for the purposes of the Leasehold Property (Repairs) Act 1938.")
 
  
BY THE LORD KINGSLAND
 
170     Page 44, line 18, leave out ("or tenant") and insert (", tenant or surety") 
171     Page 44, line 32, leave out ("or tenant") and insert (", tenant or surety") 
  
After Clause 94
 
  
BY THE LORD KINGSLAND
 
171A     Insert the following new Clause-- 
     ("  .--(1)  Notwithstanding the specific terms of any lease of the whole or part of the building, any person responsible for management functions in relation to the premises shall ensure that the entire building is insured under a single insurance policy.
 
    (2)  Any person responsible for arranging an insurance policy under subsection (1) shall be under a duty to obtain best value for the service charge payers in procuring a suitable policy.
 
    (3)  If, in the opinion of any party to a lease, the insurance policy arranged in accordance with subsection (1) does not represent best value for the service charge payers, they may refer the matter to the leasehold valuation tribunal for determination.
 
    (4)  Any reference of an insurance policy to a leasehold valuation tribunal under this section shall be supported by an alternative quotation for insurance cover from a recognised and reputable supplier to support the case; and the leasehold valuation tribunal shall not consider any such reference unless it is supported by such an alternative quotation.
 
    (5)  The duty to arrange insurance under subsection (1) applies notwithstanding the existence of a dispute which has been referred to the leasehold valuation tribunal.
 
    (6)  In determining any dispute referred to it under subsection (3), the leasehold valuation tribunal shall take into account--
    (a)  the extent of cover procured, and
    (b)  the level of premium payable by individual service charge payers.")
Management functions: insurance.
  
Clause 95
 
  
BY THE LORD KINGSLAND
 
172     Page 45, line 1, leave out ("or tenant") and insert (", tenant or surety") 
173     Page 45, line 7, leave out ("or tenant") and insert (", tenant or surety") 
173A     Page 45, line 9, at end insert--
 
    ("(  )  The RTM company must not grant an approval in relation to the making of alterations, improvements or change of use.")
 
174     Page 45, line 13, after ("possession,") insert ("sharing occupation or use") 
174A     Page 45, line 13, leave out ("the making of improvements or alterations of use,") 
175     Page 45, line 26, leave out ("or tenant") and insert (", tenant or surety") 
 
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Prepared 28 February 2001