Taking back control of a Residents Management Company, a case study, pt 9
Having established roughly who is a member of the RMC, and how the RMC is theoreticaly governed (the homeowners elect directors who appoint a managing agent, "the MA") ... what are the actual responsibilities of the RMC and its MA?
These responsibilties arise principally under the leases of the flats and the transfer deeds for the houses.
The RMC's role in relation to the houses
For example, in one of the transfers of one of the houses on the estate, the Management Company (that is, the RMC) covenants as follows:
6.1 to maintain renew replace and keep in good and substantial repair and condition [...] the Management Areas [...]
6.2 to tend repair and maintain the Open Space [...]
and so on.
Presumably this is with the permission of the owners of the "Management Areas" and "Open Space", if the RMC itself is not the owner.
Now the RMC isn't actually a party to these transfer deeds, which are between the Housing Association and the initial buyer of the house. Over time, these initial buyers will sell their interest to someone else, who in theory takes on the benefits and burdens of the conditions enumerated in the transfer deed, including the relationships with the RMC.
The RMC's role in relation to the flats
Similarly, in the head leases of the flats, the Management Company, which is a *party* to these leases, covenants:
6.2 To provide and perform the Services [...]
and "the Services" are set out in great detail in one of the schedules. As a party to the leases, there's no further question as to the RMC's right to provide the services and charge for them. With two caveats: the Landlord rather than the Management Company has the power to place the buildings insurance, and secondly the Landlord has the right to "step in" to the Management Company's shoes as follows:
7.7 If the Management Company shall fail to perform and of its obligations hereunder on the request in writing of the Tenant the Landlord shall perform such obligations [...]