TPI Level 4 Member Exam in Leasehold Management flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Section 146 notice

Notice that must be served before forfeiture for breach of covenant other than rent; it specifies the breach, requires remedy and compensation, and gives at least 14 days.

Section 19 reasonableness test

Service charge costs are recoverable only to the extent they are reasonably incurred, and the works or services must be of a reasonable standard.

Section 20B eighteen-month limit

Costs incurred more than eighteen months before a service charge demand cannot be recovered unless the tenant was notified in writing within that period that they would be charged.

Section 168 determination requirement

Before forfeiting a lease for breach of covenant, the landlord must obtain a court or tribunal determination that the breach occurred, or the tenant must admit it.

Service charge definition

An amount payable under a lease for services, repairs, maintenance, improvements, insurance or management, which varies according to the costs incurred (s.18 LTA 1985).

Section 21 cost summary

On written request the landlord must provide a written summary of relevant service charge costs for the last accounting period within one month.

Section 20 consultation threshold

Qualifying works costing more than £250 per tenant, and service contracts over £100 per tenant per year lasting more than twelve months, require formal consultation.

Administration charge

A charge for services, approvals or consents under a lease; it is payable only if reasonable and if the demand is accompanied by the prescribed summary of rights.

Section 42 trust account

Service charge contributions must be held in a designated trust account; where the landlord is a company, the trustees must include someone who is not a member or director.

Reserve fund

Money collected in advance to meet future cyclical major works; it is held separately and normally carried forward rather than credited back to leaseholders at year end.

Balancing charge or credit

The year-end adjustment between budgeted and actual service charge expenditure, charged to or credited to leaseholders in the manner the lease directs.

Notice of intention

First consultation stage: it describes the proposed works, invites written observations within thirty days and invites contractor nominations from tenants or a recognised tenants' association.

Section 20ZA dispensation

An application to the First-tier Tribunal to be released from some or all consultation requirements; it may be granted retrospectively and removes the £250 per-tenant recovery limit.

£250 consultation cap

Where consultation requirements are not complied with, the amount recoverable from each tenant for qualifying works is limited to £250 unless the tribunal dispenses with the requirements.

Long-term qualifying agreement

A contract for services lasting more than twelve months at a cost above £100 per tenant per year; consultation must be repeated at five-yearly intervals.

Fire risk assessment

The responsible person for common parts under the Regulatory Reform (Fire Safety) Order 2005 must assess and record fire risks and put preventive and protective measures in place.

Higher-risk building definition

A building at least 18 metres high or with at least seven storeys, containing at least two residential units; it needs registration with the Building Safety Regulator and a safety case.

LOLER lift inspection

Passenger lifts must undergo a thorough examination by a competent person at least every six months under the Lifting Operations and Lifting Equipment Regulations 1998, with records kept.

Reinstatement cost

The cost of rebuilding or repairing the property to its original form after damage; this, not market value, is the figure insured under the buildings policy.

Section 30 insurance summary

A tenant may request a written summary of the buildings insurance cover, which the landlord must supply within twenty-one days under the Landlord and Tenant Act 1985.

Insurance Act 2015 remedies

For breach of the duty of fair presentation of risk, insurers may avoid the policy, apply a proportionate reduction to a claim, or charge an additional premium.

Collective enfranchisement

The purchase of the freehold by qualifying long leaseholders holding at least two-thirds of the flats in a building, under the Leasehold Reform, Housing and Urban Development Act 1993.

Marriage value

The extra value created by extending or buying out a lease with less than eighty years unexpired; it is shared equally between leaseholder and landlord in the premium.

Right to manage

A no-fault, no-premium right under the Commonhold and Leasehold Reform Act 2002 for qualifying leaseholders to take over block management through an RTM company limited by guarantee.

LPE1 form

The Law Society's standard leasehold property enquiries form, completed by the manager on sale, covering service charges, arrears, disputes, insurance and planned works.

Subject access request

A request by an individual for their own personal data; it must be answered within one month, extendable by two further months where the request is complex.

Notice of assignment

Written notice to the landlord or manager that a lease has been transferred or charged, allowing the block record to be updated and any administration charge to be raised.

Eight-week complaint rule

If a complaint remains unresolved after eight weeks, the consumer may refer it to the approved redress scheme of which the agent is a member.

Reasonable adjustments duty

Under the Equality Act 2010, managers must change policies, practices, communications or physical features so that disabled residents can access services.

Conflicts of interest

Any personal, financial or business interest that could affect professional judgement; it must be identified, disclosed and either avoided or managed.

Client Money Protection

An insurance-backed scheme that reimburses consumers if an agent misappropriates or loses client money; agents holding client funds in England must belong to one.

Bribery Act 2010

It creates offences of offering, promising, giving, requesting or accepting a bribe, plus a corporate offence of failing to prevent bribery by associated persons.