Do service charge accounts need to be certified? — KDL Law

Accounts Overview

The 3-Minute Rule for Certification of service charge accounts - isurv

The issue before the Upper Tribunal in Klosterkotter-Dit-Rawe v Greyclyde Investments Limited was whether the failure to provided certified accounts at the year end (in breach of the terms of the Lease) suggested that the interim demands (in regard of the next monetary year) were invalid. In legal language the problem was whether the provision of certificates was a condition precedent to the Tenant's liability to pay the interim charges.

The Upper Tribunal described an earlier decision of the Upper Tribunal which had mentioned: "It might well be the case that, normally, non-compliance with a certification program will not avoid a Landlord from recovering service charges payable on account (as in both Pendra Loweth and Elysian Fields) but, if so, that is because payments on account are most likely to be set by referral to a price quote of future expenditure, rather than by the conclusive certification of previous expenditure ... That was because the Lease did not require certificates before interim charges could be recuperated. Although recovering charges in respect of balancing (i. e. end of year) demands might be difficult if certified accounts have actually not been offered, that ought to not mean in the bulk of cases that charges in regard of interim demands can not be recuperated.

Openness and responsibility are principles for service charges. The Latest Info Found Here is to help home management companies, chartered surveyors and property owners to fulfill their service charge commitments and get accreditation, by supplying a flexible, value for money service. We likewise try to work with the handling agents and property managers, making them more effective and the whole process less expensive.