When something goes wrong in a building, the first question is often "who deals with this?" The answer comes from the lease, and from who has taken on the management. Here is the usual split, and how to check it for your building.
| Area | Usually the responsibility of |
|---|---|
| Structure, roof, foundations | Landlord, or the RMC or RTM company if it has taken on the duty |
| Communal areas and services | The party that manages the building, through the service charge |
| Building insurance | Landlord or management company, with the cost recovered from leaseholders |
| Inside the flat | The leaseholder, within the limits of the lease |
| Fire safety in the common parts | The "responsible person": whoever has control of the premises |
| Day-to-day running | The managing agent, if one is appointed, or the directors |
| Decisions on spending and policy | The board of the company, not the agent |
Roles and what they mean
- Landlord. Owns the freehold and is bound by the lease, even where management is delegated.
- Management company. Holds the management duties under the lease, or under the Right to Manage.
- Managing agent. Carries out tasks for the company. The agent is accountable to the company, which is accountable to the leaseholders.
- Directors. Make the decisions for the company and owe legal duties to it.
- Leaseholders. Pay the service charge and keep to the lease, and they are often the members of the company.
Delegation does not remove responsibility
Appointing an agent or contractor does not remove the legal responsibility of the person who holds it. A company with fire safety duties remains responsible even when the agent arranges the risk assessment. Boards should ask for evidence, not just assurance.
Questions to ask
- Who is the "responsible person" for fire safety?
- Who holds the service charge money, and who can spend it?
- Who is named on the insurance policy?
- Who deals with an emergency out of hours?
- Who decides to spend money above a set amount?
Write it down. A one-page responsibility chart, agreed by the board, ends most arguments before they begin. Review it when anything changes: a new agent, a new contractor or new directors.
This guide is general information, not advice on your circumstances. Leasehold law is detailed and changes: check the current position and take advice before acting.