Commonhold and Leasehold Reform Bill -
Amendments to be debated in the House of Lords
- continued
House of Lords

back to previous amendments
 
  
Clause 72
 
  
BY THE LORD KINGSLAND
 
233     Page 31, line 8, at end insert ("and is either--
    (a)  an individual residing in the flat, or
    (b)  a company controlled directly or indirectly by an individual residing in the flat or jointly by individuals both or all residing in the flat.")
 
  
Clause 73
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
234*     Page 31, line 27, leave out ("21") and insert ("7") 
  
Clause 74
 
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
235*     Page 32, line 25, leave out ("21") and insert ("7") 
236*     Page 32, line 28, leave out ("21") and insert ("7") 
237*     Page 32, line 31, leave out ("21") and insert ("7") 
  
Clause 75
 
  
BY THE LORD KINGSLAND
 
238     Page 33, line 3, leave out ("a") and insert ("an") 
239*     Page 33, line 10, at end insert--
    ("(  )  set out the principal, responsibilities and obligations, which the company will assume as the manager of the premises, by referring to the relevant provisions of the Royal Institution of Chartered Surveyors service charge residential management code, or any other code relevant to the management of residential properties, subject to a service charge which has been approved by the Secretary of State under the terms of section 87 of the Leasehold Reform, Housing and Urban Development Act 1993,")
 
240     Page 33, line 18, at end insert--
 
    ("(4)  If a notice of invitation to participate is not served in accordance with this section, every director and officer of an RTM company at the time of the breach shall be liable on summary conviction to fine not exceeding level 3 on the standard scale.
 
    (5)  If any director or officer of an RTM company intentionally fails to give notice to any qualifying tenant in accordance with this section, such director or officer shall be liable on summary conviction to not more than 3 months imprisonment and a fine not exceeding level 5 on the standard scale.")
 
241*     Page 33, line 18, at end insert--
 
    ("(  )  Any person on whom the RTM company must serve a claims notice under section 77(6) may, within 14 days of the service of a notice, serve a notice requiring the RTM company to provide proof that it has complied with this section, and the RTM company shall comply with that notice within 14 days of the date of the giving of the notice.")
 
  
Clause 76
 
  
BY THE LORD KINGSLAND
 
242     Page 33, line 19, leave out ("a") and insert ("an") 
243     Page 33, line 20, after ("person") insert ("who has a right to manage the premises or any part thereof") 
244     Page 33, line 22, after ("his") insert ("knowledge,") 
245     Page 33, line 23, leave out paragraph (b) and insert--
    ("(b)  as to the matters required by section 78(3) and (4) to be stated in a claim notice")
 
246     Page 33, line 37, at end insert--
 
    ("(4)  A failure without reasonable excuse to comply with such a notice shall be an offence, punishable on summary conviction with a fine not exceeding level 3 on the standard scale.")
 
  
Clause 77
 
  
BY THE LORD KINGSLAND
 
247*     Page 33, line 44, leave out ("14") and insert ("28") 
248     Page 34, line 1, leave out ("a") and insert ("an") 
  
Clause 78
 
  
BY THE LORD KINGSLAND
 
249*     Page 34, line 39, at end insert--
 
    ("(  )  It must contain a statement that the members of the RTM company have been informed of the principal responsibilities and obligations which the company will assume as the manager of the premises on acquiring the right to manage, and that all members have understood and accepted the resulting duties and obligations which will fall to them as members of the RTM company.")
 
250*     Page 34, line 39, at end insert--
 
    ("(  )  It must include an offer of cover to provide for the RTM Company directors' and officers' liability insurance, fidelity guarantee and professional indemnity insurance.")
 
251*     Page 34, line 43, leave out ("one month") and insert ("two months") 
  
Clause 79
 
  
BY THE LORD KINGSLAND
 
252*     Page 35, line 15, at end insert--
 
    ("(  )  The claim notice must be registered at HM Land Registry for registered land, or at HM Land Charges Registry for unregistered land and, if not so registered, shall have no effect on a purchaser for value of either the reversionary freehold or any leasehold interest.")
 
253     Page 35, line 21, leave out ("a") and insert ("an") 
  
Clause 80
 
  
BY THE LORD KINGSLAND
 
254     Page 35, line 28, leave out ("a") and insert ("an") 
  
Clause 81
 
  
BY THE LORD KINGSLAND
 
255     Page 36, line 3, leave out ("a") and insert ("an") 
256     Page 36, line 12 at end insert ("or
    (c)  that it is not just or convenient that the RTM company should acquire the right to manage,")
 
257     Page 36, line 26, after ("(2)(b)") insert ("or (c)") 
258     Page 36, line 33, at end insert--
 
    ("(  )  In considering whether it is or is not just or convenient that the RTM company should acquire the right to manage, the leasehold valuation tribunal shall consider, in particular--
    (a)  whether the objector has managed the premises satisfactorily;
    (b)  whether the RTM company is likely to manage the premises more satisfactorily;
    (c)  any financial losses which the objector may suffer by virtue of losing the right to manage;
    (d)  any actual or potential effect on the value of the reversion to the premises of giving the RTM company the right to manage;
    (e)  whether the objector is resident at the premises;
    (f)  the wishes of any tenants of any part of the premises who are not qualifying tenants; and
    (g)  the wishes of any qualifying tenants of any part of the premises who are not members of the RTM company")
 
  
Clause 82
 
  
BY THE LORD KINGSLAND
 
259     Page 37, line 2, leave out ("a") and insert ("an") 
  
BY THE LORD CHANCELLOR
 
260     Page 37, line 9, leave out ("the court") and insert ("a leasehold valuation tribunal") 
261     Page 37, line 28, leave out ("court") and insert ("leasehold valuation tribunal") 
262     Page 37, line 38, leave out ("court") and insert ("leasehold valuation tribunal") 
  
Clause 83
 
  
BY THE LORD KINGSLAND
 
263     Page 37, line 42, leave out ("A") and insert ("An") 
264*     Page 38, line 7, 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
 
265     Page 38, line 8, leave out ("a") and insert ("an") 
  
Clause 85
 
  
BY THE LORD KINGSLAND
 
266     Page 38, line 34, leave out ("A") and insert ("An") 
267     Page 39, line 3, leave out ("A") and insert ("An") 
  
Clause 86
 
  
BY THE LORD KINGSLAND
 
268     Page 39, line 10, leave out ("a") and insert ("an") 
  
After Clause 86
 
  
BY THE LORD KINGSLAND
 
269     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,
    (b)  on the landlord of the whole or any part of the premises (including mesne landlords), and
    (c)  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 appropriate national authority may make regulations for the precedure for such applications, including provisions as to costs.")
Cessation of RTM company rights.
  
Clause 87
 
  
BY THE LORD KINGSLAND
 
270     Page 39, line 43, leave out from ("is") to end of line 44 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") 
271     Page 40, line 2, leave out ("the date one month") and insert ("a quarter day not less than three months") 
  
Clause 88
 
  
BY THE LORD KINGSLAND
 
272     Page 40, line 29, leave out ("or tenant") and insert (", tenant or surety") 
273*     Leave out Clause 88 
  
Clause 89
 
  
BY THE LORD KINGSLAND
 
274*     Leave out Clause 89 
  
After Clause 89
 
  
BY THE LORD KINGSLAND
 
275     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.
  
BY THE LORD GOODHART
THE BARONESS HAMWEE
 
276*     Insert the following new Clause-- 
     ("  .--(1)  Subject to subsections (2) and (3), the RTM company shall become entitled to the benefits and subject to the obligations of the manager party under the existing management contracts relating to the premises.
 
    (2)  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.
 
    (3)  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.
    (4)  Any term of a contract which provides for any compensations to be payable for the exercise by a RTM company of rights under subsection (2) or (3) is void.")
Existing management contracts.
  
Clause 90
 
  
BY THE LORD KINGSLAND
 
277     Page 42, line 28, leave out ("But,") 
278     Page 42, line 28, leave out ("that") and insert ("subsection (3)") 
279     Page 42, line 30, leave out ("the requirement is imposed") and insert ("he is notified of the requirement") 
  
Clause 91
 
  
BY THE LORD KINGSLAND
 
280     Page 42, line 34, leave out ("or tenant") and insert (", tenant or surety") 
  
BY THE LORD CHANCELLOR
 
281     Page 42, line 47, leave out ("previously incurred") and insert ("incurred before the acquisition date") 
 
back to previous page continue to next page
 
House of Lords home page Parliament home page House of Commons home page search page enquiries index

© Parliamentary copyright 2001
Prepared 9 April 2001