Question 1

FPRA Subs Legitimate Expenses?

Accepted Answer

Q: Could you please let me know if the RA subscription fee to FPRA is a legitimate expense that can be charged to the service charge account managed by the managing agents? If this is so, does it imply that all leaseholders in our block are members of our association? If it does not, are the members just those who sign a form of authority for the association to act on their behalf? We are hoping to amend our constitution to reflect current practices and need to be clear who is eligible to vote at our forthcoming AGM, and the quorum required for such a change. A: FPRA Chairman Bob Smytherman replies: My non-legal view is it is perfectly ‘reasonable’ for the service charge fund to be used to pay the FPRA Ltd subscription to provide an unlimited FREE impartial advice service My own RA certainly does in my block as we see the FPRA in the same way as a motorist would with a rescue service such as the AA - you hope you will never need us but very glad that we are when needing advice. I guess the problem may arise if your RA was not formally recognised by the landlord that appoints the managing agents in your block as in this case there is a possibility that a leaseholder who is not an RA member could potentially challenge the landlord/agent that this charge is ‘unreasonable’. I am not convinced that a tribunal would support this view and in reality it’s unlikely that such a case would make it to tribunal over such small sum. The advantage of the service charge paying for FPRA Ltd is that all the leaseholders who pay the service charge would be members of the RA with full voting rights. If the managing agent refused to pay the subscription, then it would be very interesting to know why as presumably they would not like the idea of potentially being challenged by an RA benefiting from independent expert advice from ourselves who have over 45 years’ experience? Question submitted January 2018

Question 2

FPRA Subs Legitimate Expenses?

Accepted Answer

Q: Could you please let me know if the RA subscription fee to FPRA is a legitimate expense that can be charged to the service charge account managed by the managing agents? If this is so, does it imply that all leaseholders in our block are members of our association? If it does not, are the members just those who sign a form of authority for the association to act on their behalf? We are hoping to amend our constitution to reflect current practices and need to be clear who is eligible to vote at our forthcoming AGM, and the quorum required for such a change. A: FPRA Chairman Bob Smytherman replies: My non-legal view is it is perfectly ‘reasonable’ for the service charge fund to be used to pay the FPRA Ltd subscription to provide an unlimited FREE impartial advice service My own RA certainly does in my block as we see the FPRA in the same way as a motorist would with a rescue service such as the AA - you hope you will never need us but very glad that we are when needing advice. I guess the problem may arise if your RA was not formally recognised by the landlord that appoints the managing agents in your block as in this case there is a possibility that a leaseholder who is not an RA member could potentially challenge the landlord/agent that this charge is ‘unreasonable’. I am not convinced that a tribunal would support this view and in reality it’s unlikely that such a case would make it to tribunal over such small sum. The advantage of the service charge paying for FPRA Ltd is that all the leaseholders who pay the service charge would be members of the RA with full voting rights. If the managing agent refused to pay the subscription, then it would be very interesting to know why as presumably they would not like the idea of potentially being challenged by an RA benefiting from independent expert advice from ourselves who have over 45 years’ experience? Question submitted January 2018

FPRA Subs Legitimate Expenses?

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