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Amendments to the Commonhold and Leasehold Reform Bill

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

Here you can browse the Supplement (b) to the Marshalled List of Amendments to the Commonhold and Leasehold Reform Bill to be moved in the House of Lords.

  
After Clause 71
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Insert the following new Clause-- 
     ("  .--(1)  A person who wishes to practice as a managing agent and hold the service charge trust fund shall be required to--
    (a)  be subject to a code of practice,
    (b)  undergo yearly auditing of accounts,
    (c)  be covered by professional indemnity and fidelity insurance, and
    (d)  undergo a minimum quota of annual management training.
    (2)  Regulations under this section shall make provision about the form and content of the above and make such other rules, requirements and restrictions as may be appropriate to ensure proper standards are maintained, and the interests of landlords, RTM companies and leaseholders are safeguarded.")
Regulation of managing agents.
  
Clause 75
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Page 33, line 15, at end insert--
    ("(d)  contain the responsibilities of the proposed RTM company and its members,
    (e)  state the names of members of the proposed RTM company, and
    (f)  state, in accordance with section 89(3), that each person who becomes a member of the RTM company shall be liable for costs incurred (jointly and severally with the RTM company and each other person who is so liable) by those persons specified in section 85(1) should the events mentioned in section 86(1) occur.")
 
  
After Clause 75
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Insert the following new Clause-- 
     ("  .--(1)  Before issuing a notice of invitation to participate, the RTM company shall produce a document which shall include the following details--
    (a)  a financial plan to deal with the potential shortfall between the service charge income and expenditure,
    (b)  any professional advisors that it is intended to appoint,
    (c)  any major plans for expenditure in the first year of management, and
    (d)  a copy of the memorandum and articles of the RTM company.
    (2)  Regulations under this section may make provision about the form and content of the above.")
Provision of information to prospective members of RTM company.
  
Clause 79
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Page 35, line 15, at end insert--
 
    ("(  )  It must state that each person who becomes a member of the RTM company shall be liable for costs incurred (jointly and severally with the RTM company and each other person who is so liable) by those persons specified in section 85(1) should the events mentioned in section 86(1) occur.")
 
  
After Clause 89
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Insert the following new Clause-- 
     ("  .  Upon the acquisition date, the RTM company shall be under no obligation to continue contracts but the rules relating to frustrated contracts shall apply. Costs incurred at the date of frustration shall be recoverable, otherwise compensation shall not be payable. The above procedures may be varied by agreement between parties.")Contracts at handover of management.
  
Clause 90
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Page 42, line 27, leave out ("four") and insert ("three") 
  
Clause 91
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Page 43, line 4, leave out ("four") and insert ("three") 
     Page 43, leave out line 8 
  
After Clause 91
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Insert the following new Clause-- 
     ("  .--(1)  To ensure a proper handover of management function and that adequate funds are available to the RTM company 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)  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.
 
    (5)  The above procedures may be varied by agreement between the parties.")
Handover of management and funds to RTM company.
  
Clause 100
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Page 47, line 7, insert ("or the appropriate proportion shall be determined with regard to the method of allocation of service charge in other units.
 
    (  )  Failing agreement to determine the appropriate proportion by either method described in subsection (4), the matter shall be referred to an LVT.")
 
  
Clause 112
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Page 52, line 38, at end insert--
 
    ("(2)  In any property where there is a non-residential element, the landlord may serve a counter-notice but shall be obliged to offer a 999 year lease of all the residential areas to the RTE company.
 
    (3)  Notwithstanding the provisions of subsection (2), the RTE company will have full rights to manage the residential area.
 
    (4)  The 999 year lease shall include suitable mutually enforceable covenants which may be specified in regulations.")
 
  
Clause 142
 
  
BY THE LORD WILLIAMS OF ELVEL
THE EARL OF CAITHNESS
 
     Page 63, line 12, leave out subsection (3) 
     Page 63, line 28, at end insert --
 
    ("(  )  If the landlord wishes to enforce his right to recover through proceedings, then he shall be obliged to--
    (a)  have demanded rent,
    (b)  have made a written application declaring his intent to commence proceedings not less than 30 days after the last date on which rent was due, and
    (c)  waited a period not less than 14 days after the event mentioned in (b) before commencing proceedings.")
 
 
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Prepared 25 April 2001