Holding Landlords to Account – your rights!

Those who stands by their rights harm no one!!!

1 – Certified accounts must be provided by landlord …

 Commonhold and leasehold reform act 2002, section 152 Statement of Accounts 

21 Regular Statement of Accounts

(3) Where the landlord supplies a statement of account to a tenant he must also supply to him—

(a)a certificate of a qualified accountant that, in the accountant’s opinion, the statement of account deals fairly with the matters with which it is required to deal and is sufficiently supported by accounts, receipts and other documents which have been produced to him, and

(b)a summary of the rights and obligations of tenants of dwellings in relation to service charges.

(4)The regulations may make provision about—

(g)the descriptions of persons who are to be qualified persons for the purposes of subsection (3).

 

Landlord and Tenant Act 1985

28 Meaning of “qualified accountant”.

[F1(1)The reference to a “ qualified accountant ” in section 21(6) (certification of summary of information about relevant costs) is to a person who, in accordance with the following provisions, has the necessary qualification and is not disqualified from acting.

F2[(2)A person has the necessary qualification if he is eligible for appointment as a [F3statutory auditor under Part 42 of the Companies Act 2006] .]

 

Companies Act 2006, Part 42

1210 Meaning of “statutory auditor” etc

(1)In this Part “statutory auditor” means—

(h)a person appointed as auditor of a prescribed person under a prescribed enactment authorising or requiring the appointment;

 

2 – …no more than 6 months after “financial accounting” year end.

 Commonhold and leasehold reform act 2002, section 152 Statement of Accounts 

21 Regular statements of account

(2)The statement of account in relation to an accounting period must be supplied to each such tenant not later than six months after the end of the accounting period.

 

3 – Failure to provide Certified Accounts within 6 months gives you the right to withhold further service charge payments until Certified Accounts are provided by issuing notice in accordance with

 

Landlord and Tenant Act 1985

21A Withholding of service charges

(1)A tenant may withhold payment of a service charge if—

(a) the landlord has not supplied a document to him by the time by which he is required to supply it under section 21, ..

SAMPLE NOTICE – Failure to provide Certified Accounts

 

 

4 – Once Certified accounts are provided request inspection including supporting documentation within 6 months of receiving Certified Accounts…

 Commonhold and leasehold reform act 2002, section 152 Statement of Accounts

22 Inspection etc. of documents

(1)A tenant may by notice in writing require the landlord—

(a)to afford him reasonable facilities for inspecting accounts, receipts or other documents relevant to the matters which must be dealt with in a statement of account required to be supplied to him under section 21 and for taking copies of or extracts from them, or

(b)to take copies of or extracts from any such accounts, receipts or other documents and either send them to him or afford him reasonable facilities for collecting them (as he specifies).

(4)But if—

(a)the statement of account is not supplied to the tenant on or before that date, or

(b)the statement of account so supplied does not conform exactly or substantially with the requirements prescribed by regulations under section 21(4),

the six month period mentioned in subsection (3) does not begin until any later date on which the statement of account (conforming exactly or substantially with those requirements) is supplied to him.

 

 

5 – Once Certified Accounts are provided requests inspection of Service Charge Bank account…

 

5A – Must be a trust account – not a normal bank account  (normal bank account is just an account of how much you lend the bank and you are only a creditor if it goes bankrupt!!!)

Commonhold and leasehold reform act 2002, section 152 Statement of Accounts

156 Service charge contributions to be held in separate account

(1)After section 42 of the 1987 Act insert—

“42AService charge contributions to be held in designated account

(1)The payee must hold any sums standing to the credit of any trust fund in a designated account at a relevant financial institution.

(2)An account is a designated account in relation to sums standing to the credit of a trust fund if—

(a)the relevant financial institution has been notified in writing that sums standing to the credit of the trust fund are to be (or are) held in it, and

(b)no other funds are held in the account,

 

5B – Right to inspect…

(3)Any of the contributing tenants, or the sole contributing tenant, may by notice in writing require the payee—

(a)to afford him reasonable facilities for inspecting documents evidencing that subsection (1) is complied with and for taking copies of or extracts from them, or

(b)to take copies of or extracts from any such documents and either send them to him or afford him reasonable facilities for collecting them (as he specifies).

 

5C – To evidence sums are being held (paragraph 1) bank statements are required and this is decided On the 17 July 2019 the First Tier Tribunal in case reference MAN/00BY/LSC/2019/0003, Judge C.P. Tonge at 29, and at 30 only sort codes and account numbers if any can be redacted, and at 31 names cannot be redacted as they are public information held at the land registry.

SAMPLE NOTICE – Request to inspect accounts and bank statement

 

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