Embedded Files
Our Legal Position Clarified
Our Legal Position Clarified
When Locksmeade Owners asked for payment of the 2019 maintenance fee, one of the more recent house owners on the development questioned the Company’s right to charge the fee and whether this should be an equal amount for all houses. They suggested they were considering ‘resigning’ from the Company and were seeking legal advice on the issue. The way we were being challenged made us feel we needed legal advice to clarify the company’s position.
Without its previous support in these matters (Richard Millard and a retired solicitor resident on Locksmeade for many years) the Committee considered it needed legal clarification of the rights and obligations of the Company and the owners. A solicitor from Rose & Rose in Kingston reviewed the Land Transfer documentation, the Company Memorandum of Understanding and the Articles of Association and the wording of the Deed of Covenant signed by each of the owners when they purchase a property on the Locksmeade Development.
The solicitor advised:
New owners accept membership of the Company when they purchase a property on Locksmeade; there is no provision for them to not do so.
The role of the Company is in Clause 7 of the Transfer and paragraph 14 of Schedule 3 requires the owners amongst other things to pay “an equal share (having regard to the number of houses on the estate) of the cost of administration of the Management Company and all the sums expended by the Company in complying with its obligations under Clause 7 of [the] Transfer”.
The Deed owners sign obliges them to ensure their share is passed to the incoming owners when they sell the property.
The Deed also obliges them to comply with the requirement of Schedule 3 of the Land Transfer document.
The Company holds an annual AGM as required in its Articles of Association which is open to all shareholders. Shareholders are able to question any aspect of work undertaken by the Company during the previous year and set priorities for the current year.
Page updated
Google Sites
Report abuse