What Is A Residents' Management Company?
A Management Company is a party to certain leases or transfer documents. The company’s role is to be responsible for the management of the service charge and the delivery of management and maintenance services at the development. A typical lease will have two or three parties (bi-partite or tri-partite). A bi-partite lease will name the freeholder and the leaseholder whereas a tri-partite lease will name the freeholder, the Management Company, and the leaseholder. Where leases include a Management Company, it is common for this company to be controlled by the leaseholders. As with any company, it is registered at companies house and much have Directors and a Secretary. It is also possible for a Management Company to written into the documentation under which freehold houses are sold. The exact obligations and extent of power of the company is specified in the respective the leases or transfer documentation and may vary from development to development.
Where a Management Company is involved, the leaseholders or homeowners therefore control the service charge and how services are delivered to the development. However they then may choose to discharge this responsibility to a professional Managing Agent such as Realty. It is important to note the difference between a Management Company and a Managing Agent. Realty are a Managing Agent; we are business that provides professional management services to more than one client. We are not normally party to the documentation under which your home is demised, however this is technically possible and occurs in certain instances.
Further questions? Contact us.