Question 1

Legal obligations of dormant RMC's

Accepted Answer

Redford Court is a small development of 16 purpose-built flats. It is owned and run by our Resident Management Company, but due to the increasing complexity of leasehold legislation, there is a risk the company will become ‘Dormant’ as no one is prepared to take on the duties of a Director of the Company, and the consequent legal liability. My legal question is: if the landlord company is Dormant, who is responsible for complying with the various Landlord & Tenant Acts? The FPRA replies: It does not matter whether the landlord company is dormant or active, as irrespective of this the landlord company will continue to have obligations under the terms of the lease and under the appropriate legislative enactments. Accordingly, in the event a dormant landlord company fails to undertake/execute its responsibilities it will be opening itself to actions being brought against it by leaseholders for non-compliance with the appropriate lease terms and/or legislative enactments.

Question 2

Legal obligations of dormant RMC's

Accepted Answer

Redford Court is a small development of 16 purpose-built flats. It is owned and run by our Resident Management Company, but due to the increasing complexity of leasehold legislation, there is a risk the company will become ‘Dormant’ as no one is prepared to take on the duties of a Director of the Company, and the consequent legal liability. My legal question is: if the landlord company is Dormant, who is responsible for complying with the various Landlord & Tenant Acts? The FPRA replies: It does not matter whether the landlord company is dormant or active, as irrespective of this the landlord company will continue to have obligations under the terms of the lease and under the appropriate legislative enactments. Accordingly, in the event a dormant landlord company fails to undertake/execute its responsibilities it will be opening itself to actions being brought against it by leaseholders for non-compliance with the appropriate lease terms and/or legislative enactments.

Legal obligations of dormant RMC’s

Search

Articles Archive