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Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

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in service charges, so as to ensure that <strong>the</strong>y are not used to secure for<strong>the</strong> l<strong>and</strong>lord additi<strong>on</strong>al pr<strong>of</strong>it; (2) requiring full informati<strong>on</strong> about <strong>the</strong>service charge scheme to be provided to all tenants in <strong>the</strong> particulardevelopment in a readily understood manner; (3) requiring full annualaccounts to be furnished to tenants explaining exactly how <strong>the</strong>charges have been calculated <strong>and</strong> prohibiting collecti<strong>on</strong> orenforcement unless <strong>and</strong> until <strong>the</strong> accounts are furnished; (4) providinga statutory scheme for arbitrati<strong>on</strong> or resoluti<strong>on</strong> <strong>of</strong> disputes. 9 TheCommissi<strong>on</strong> must emphasise that <strong>the</strong>se are simply illustrative <strong>of</strong> <strong>the</strong>type <strong>of</strong> statutory provisi<strong>on</strong> which might be appropriate. TheCommissi<strong>on</strong> must reserve its positi<strong>on</strong> at this stage <strong>on</strong> <strong>the</strong> fundamentalissues <strong>of</strong> what form any legislati<strong>on</strong> should take, <strong>and</strong> its scope <strong>and</strong>c<strong>on</strong>tent, until <strong>the</strong> c<strong>on</strong>siderati<strong>on</strong> <strong>of</strong> multi-unit developments referred toearlier has progressed much fur<strong>the</strong>r. Only <strong>the</strong>n can a decisi<strong>on</strong> betaken as to whe<strong>the</strong>r <strong>the</strong> appropriate legislati<strong>on</strong> should be included inproposed legislati<strong>on</strong> to reform l<strong>and</strong>lord <strong>and</strong> tenant law or in speciallegislati<strong>on</strong> to deal with multi-unit developments. The Commissi<strong>on</strong>provisi<strong>on</strong>ally recommends that some legislati<strong>on</strong> <strong>on</strong> <strong>the</strong> subject <strong>of</strong>service charges may be appropriate, but that it must reserve itspositi<strong>on</strong> <strong>on</strong> its form, scope <strong>and</strong> c<strong>on</strong>tent until it has carried out afur<strong>the</strong>r review <strong>of</strong> multi-unit developments.9to compliance with <strong>the</strong> l<strong>and</strong>lord’s or tenant’s obligati<strong>on</strong>s or to <strong>the</strong> legalrelati<strong>on</strong>s between <strong>the</strong> parties: see secti<strong>on</strong> 74(3) <strong>of</strong> <strong>the</strong> Bill.This may be achieved for residential developments by <strong>the</strong> 2003 Bill:footnote 8 above.127

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