Question 1

Money not Recovered

Accepted Answer

Q: We are a block of flats whose owners form a company owning our freehold. During the preparation of our company accounts for our AGM in March this year it came to light that our managing agents had paid an estimated electricity bill for £6300 without reference to us when the previous year’s total had been £700. The agents have acknowledged that this was a mistake and said they would recover the money. To date, four months later they have failed to do so. What further action could we take to recover our money from the agents who we feel have acted negligently and breached our contract? The agents are regulated by RICS. FPRA Hon Consultant Gerry Fox replies: Ultimately the remedy is to take legal action against the agents seeking damages for alleged negligence. Before that is considered I suggest that you give notice to the agent that they repay you the money giving them a timescale failing which you will take further action. In view of the time that has already elapsed the agents should repay the money to you from their own funds and they can continue to pursue recovery from the electricity supplier. You should make this a requirement. If this is unsuccessful you can make a complaint to the RICS which will add pressure on the agent and does not involve you in any costs. As the agents are regulated by the RICS they should have Professional Indemnity Insurance and if legal action is then necessary there is a better prospect of recovering your money and costs. Question submitted July 2018

Question 2

Money not Recovered

Accepted Answer

Q: We are a block of flats whose owners form a company owning our freehold. During the preparation of our company accounts for our AGM in March this year it came to light that our managing agents had paid an estimated electricity bill for £6300 without reference to us when the previous year’s total had been £700. The agents have acknowledged that this was a mistake and said they would recover the money. To date, four months later they have failed to do so. What further action could we take to recover our money from the agents who we feel have acted negligently and breached our contract? The agents are regulated by RICS. FPRA Hon Consultant Gerry Fox replies: Ultimately the remedy is to take legal action against the agents seeking damages for alleged negligence. Before that is considered I suggest that you give notice to the agent that they repay you the money giving them a timescale failing which you will take further action. In view of the time that has already elapsed the agents should repay the money to you from their own funds and they can continue to pursue recovery from the electricity supplier. You should make this a requirement. If this is unsuccessful you can make a complaint to the RICS which will add pressure on the agent and does not involve you in any costs. As the agents are regulated by the RICS they should have Professional Indemnity Insurance and if legal action is then necessary there is a better prospect of recovering your money and costs. Question submitted July 2018

Money not Recovered

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