Commonhold and Leasehold Reform Act 2002

SCHEDULE 10 Service charges: minor and consequential amendments

Section 157 Insurance 8 (1) Paragraph 2 of the Schedule to the 1985 Act (request for summary of insurance cover) is amended as follows. (2) In sub-paragraph (1), for “require the landlord in writing” substitute “ by notice in writing require the landlord ”. (3) In sub-paragraph (2), for “request may be made” substitute “ notice may be served ”. (4) In sub-paragraph (3)— (a) for “request is duly” substitute “ notice under this paragraph is duly ”, and (b) for “whom a request” substitute “ whom such a notice ”. (5) In sub-paragraph (4), for “one month of the request,” substitute “ the period of twenty-one days beginning with the day on which he receives the notice, ”. (6) In sub-paragraph (6), for “request” substitute “ notice ”. 9 For paragraph 3 of that Schedule (request to inspect insurance policy etc. after obtaining summary of insurance cover) substitute— Inspection of insurance policy etc. 3 (1) Where a service charge is payable by the tenant of a dwelling which consists of or includes an amount payable directly or indirectly for insurance, the tenant may by notice in writing require the landlord— (a) to afford him reasonable facilities for inspecting any relevant policy or associated documents and for taking copies of or extracts from them, or (b) to take copies of or extracts from any such policy or documents and either send them to him or afford him reasonable facilities for collecting them (as he specifies). (2) If the tenant is represented by a recognised tenants’ association and he consents, the notice may be served by the secretary of the association instead of by the tenant (and in that case any requirement imposed by it is to afford reasonable facilities, or to send copies or extracts, to the secretary). (3) A notice under this paragraph is duly served on the landlord if it is served on— (a) an agent of the landlord named as such in the rent book or similar document, or (b) the person who receives the rent on behalf of the landlord; and a person on whom such a notice is so served shall forward it as soon as may be to the landlord. (4) The landlord shall comply with a requirement imposed by a notice under this paragraph within the period of twenty-one days beginning with the day on which he receives the notice. (5) To the extent that a notice under this paragraph requires the landlord to afford facilities for inspecting documents— (a) he shall do so free of charge, but (b) he may treat as part of his costs of management any costs incurred by him in doing so. (6) The landlord may make a reasonable charge for doing anything else in compliance with a requirement imposed by a notice under this paragraph. (7) In this paragraph— “relevant policy” includes a policy of insurance under which the dwelling was insured for the period of insurance immediately preceding that current when the notice is served (being, in the case of a flat, a policy covering the building containing it), and “associated documents” means accounts, receipts or other documents which provide evidence of payment of any premiums due under a relevant policy in respect of the period of insurance which is current when the notice is served or the period of insurance immediately preceding that period. 10 (1) Paragraph 4 of that Schedule (insurance effected by superior landlord) is amended as follows. (2) In sub-paragraph (1)— (a) for “a request is made” substitute “ a notice is served ”, (b) for “to whom the request is made” substitute “ on whom the notice is served ”, (c) for “make a written request for the relevant information to the person who is his landlord” substitute “ by notice in writing require the person who is his landlord to give him the relevant information ”, (d) for “that request” substitute “ the notice ”, and (e) for “secretary’s request” substitute “ secretary’s notice ”. (3) In sub-paragraph (2)— (a) for “request under paragraph 3 relates” substitute “ notice under paragraph 3 imposes a requirement relating ”, and (b) for “to whom the request is made” substitute “ on whom the notice is served ”. 11 After that paragraph insert— Effect of change of landlord 4A (1) This paragraph applies where, at a time when a duty imposed on the landlord or a superior landlord by virtue of any of paragraphs 2 to 4 remains to be discharged by him, he disposes of the whole or part of his interest as landlord or superior landlord). (2) If the landlord or superior landlord is, despite the disposal, still in a position to discharge the duty to any extent, he remains responsible for discharging it to that extent. (3) If the other person is in a position to discharge the duty to any extent, he is responsible for discharging it to that extent. (4) Where the other person is responsible for discharging the duty to any extent (whether or not the landlord or superior landlord is also responsible for discharging it to that or any other extent)— (a) references to the landlord or superior landlord in paragraphs 2 to 4 are to, or include, the other person so far as is appropriate to reflect his responsibility for discharging the duty to that extent, but (b) in connection with its discharge by that person, paragraphs 2(4) and 3(4) apply as if the reference to the day on which the landlord receives the notice were to the date of the disposal referred to in sub-paragraph (1). 12 In paragraph 5 of that Schedule, for the words from “the validity” onwards substitute “ any duty imposed by virtue of any of paragraphs 2 to 4A; but a person is not required to comply with more than a reasonable number of requirements imposed by any one person. ” 13 In paragraph 6 of that Schedule, for “paragraph 2, 3 or 4” substitute “ any of paragraphs 2 to 4A ”; and for the heading before that paragraph substitute “ Offence of failure to comply ”. Trust of service charges paid by only one tenant 15 (1) Section 42 of the 1987 Act (service charge contributions of tenants to be held in trust) is amended as follows. (2) In subsection (1)— (a) after “costs” insert “ , or the tenant of a dwelling may be required under the terms of his lease to contribute to costs to which no other tenant of a dwelling may be required to contribute, ”, (b) at the end of the definition of “the contributing tenants” insert “ and “the sole contributing tenant” means that tenant; ”, and (c) in the definition of “the payee”, for “under the terms of their leases” substitute “ , or that tenant, under the terms of their leases, or his lease ”. (3) In subsection (2), after “tenants” insert “ , or the sole contributing tenant, ”. (4) In subsection (3), insert at the end “ , or the person who is the sole contributing tenant for the time being. ” (5) In subsection (4), insert at the end “ or the sole contributing tenant shall be treated as so entitled to the residue of any such fund. ” (6) In subsection (6), for “a contributing tenant” substitute “ any of the contributing tenants ”. (7) In subsection (7), for “If after the termination of any such lease there are no longer any contributing tenants,” substitute “ On the termination of the lease of the last of the contributing tenants, or of the lease of the sole contributing tenant, ”. (8) In subsection (8)— (a) for “a contributing tenant” substitute “ any of the contributing tenants, or the sole contributing tenant, ”, and (b) after “his lease” insert “ (whenever it was granted) ”. (9) In subsection (9)— (a) after “so created” insert “ , in the case of a lease of any of the contributing tenants, ”, and (b) insert at the end “ or, in the case of the lease of the sole contributing tenant, before the commencement of paragraph 15 of Schedule 10 to the Commonhold and Leasehold Reform Act 2002. ”