Commonhold and Leasehold Reform Bill - continued        House of Lords

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SCHEDULE 10
 
  ADMINISTRATION CHARGES
  PART I
  REASONABLENESS OF ADMINISTRATION CHARGES
 
Meaning of "administration charge"
     1. - (1) In this Part of this Schedule "administration charge" means an amount payable by a tenant of a dwelling as part of or in addition to the rent which is payable, directly or indirectly-
 
 
    (a) for or in connection with the grant of approvals under his lease, or applications for such approvals,
 
    (b) for or in connection with the provision of information or documents by or on behalf of the landlord or a person who is party to his lease otherwise than as landlord or tenant,
 
    (c) in respect of a failure by the tenant to make a payment by the due date to the landlord or a person who is party to his lease otherwise than as landlord or tenant, or
 
    (d) in connection with a breach (or alleged breach) of a covenant or condition in his lease.
      (2) But sub-paragraph (1) does not apply to an amount payable by a tenant which is-
 
 
    (a) specified in his lease, or
 
    (b) calculated in accordance with a formula specified in his lease.
      (3) And sub-paragraph (1) does not apply to an amount payable by the tenant of a dwelling the rent of which is registered under Part IV of the Rent Act 1977, unless the amount registered is entered as a variable amount in pursuance of section 71(4) of that Act.
 
      (4) An order amending sub-paragraph (1) may be made by the appropriate national authority.
 
 
Reasonableness of administration charges
     2. An administration charge is payable by a tenant only to the extent that the amount of the charge is reasonable.
 
 
Liability to pay administration charges
     3. - (1) Where an amount is alleged to be payable by way of administration charge, an application may be made to a leasehold valuation tribunal for a determination whether or not any amount is so payable and, if it is, as to-
 
 
    (a) the person by whom it is payable,
 
    (b) the person to whom it is payable,
 
    (c) the amount which is payable,
 
    (d) the date at or by which it is payable, and
 
    (e) the manner in which it is payable.
      (2) The jurisdiction conferred on a leasehold valuation tribunal in respect of any matter by virtue of sub-paragraph (1) is in addition to any jurisdiction of a court in respect of the matter.
 
      (3) No application under sub-paragraph (1) may be made in respect of a matter which-
 
 
    (a) has been agreed or admitted by the tenant,
 
    (b) has been, or is to be, referred to arbitration pursuant to a post-dispute arbitration agreement to which the tenant is a party,
 
    (c) has been the subject of determination by a court, or
 
    (d) has been the subject of determination by an arbitral tribunal pursuant to a post-dispute arbitration agreement.
      (4) But the tenant is not to be taken to have agreed or admitted that the amount of an administration charge is reasonable by reason only of having paid the whole or any part of the amount alleged to be payable.
 
      (5) An agreement by the tenant of a dwelling (other than a post-dispute arbitration agreement) is void in so far as it purports to provide for a determination-
 
 
    (a) in a particular manner, or
 
    (b) on particular evidence,
  of any question which may be the subject matter of an application under sub-paragraph (1).
 
 
Interpretation
     4. - (1) This paragraph applies for the purposes of this Part of this Schedule.
 
      (2) "Tenant" includes a statutory tenant.
 
      (3) "Dwelling" and "statutory tenant" (and "landlord" in relation to a statutory tenant) have the same meanings as in the 1985 Act.
 
      (4) "Post-dispute arbitration agreement", in relation to any matter, means an arbitration agreement made after a dispute about the matter has arisen.
 
      (5) "Arbitration agreement" and "arbitral tribunal" have the same meanings as in Part I of the Arbitration Act 1996.
 
 
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