TEPLODOM Guide: Transferring Essential Documents when Changing Agents (EN)

Guide to Transferring Essential Documents when Changing Agents Simplifying the paperwork headache for self-managers What are t h e essentia l documents/files we should get from t he exis tin g managing agent who we are taking over from? I n th i s article FRPA Consultant Andrew M c K ee r answers in full this key question asked by membe r s .

T here is a great deal of paper w ork that can be p r o v ided and I attach an abb r e v iated l i st of w hat I w ould norma lly ask f o r and an e xt ra c t from t he model management agreement pub li shed b y LEASE (The Leasehold Advisory Service) and the Associat i on of Res i dential Ma n aging Ag e nts (A R MA) t hat g i ves a much more deta i led list . D o not be surprised if y ou do not get it all , but the essential documen t s are ho w e v er fundamenta l to being able to m a nage and these are clear l y ma r ked . T here is no ma n datory m i n i m u m l i st of i nformat i on and t he at t ached documents a r e not mand a tory an d on ly g iv en for guidance.

There is a debate among managing agents about how much of the day-to-day paperwork is handed over. Personally I always ask for it all; and if handing over always give all the files. The only exception is where there is an ongoing legal dispute and then some files and papers may be retained. If re l evant , any docume n ta tion abou t t he set up of y ou r R i g h t t o Manage company should be i n your hands . You w il l also need to be awar e that i f t h is is an RTM situ a t i on any contracts i n p l ace will now be f r ustrated and y ou w il l h ave to se t up ne w contracts w i th supplie r s of goods and services .

You will also need to check that your insurance polic i es re m a i n in place or if th e se wi l l h av e to be t aken o u t ane w . I f i t is a n agreed transfer of management , insu r ance and contracts m ay n ot b e suc h an iss u e i f the y ar e all re mai nin g i n p l ac e . PO Box 10271, EPPING CM16 9DB t: 0871 200 3324 e: info@fpra.org.uk w: www.fpra.org.uk The Federation of Private Residents’ Associations Ltd is a non-profit company limited by guarantee, registered under number 1992130 Registered office: Box 10271, Epping CM16 9DB

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Summary List Questions to be asked prior to hand over Check management agre e m en t for t h e corre c t notice a n d ha n dover arrangements? Handover date agree d ? Notif i cat i o n to lessees a n d te n a n ts. Insurance arrangemen t s after hando v er and w ho w i l l be r esponsible? Who wi l l be no ti fy i ng s u ppl i ers and cont r ac t ors ? Are any contracts specific to th e ou t goi n g agent, e . g. u ti lit y deals and so will have to termi n ate at handover? Who w i ll be respons i ble for outstanding arrears and/or lit i gation ? O utgoing agent to d r aw up a l i st o f d ocumen t s that wil l be handed o v er .

Agree ti metable fo r handove r o f s er v i ce c h a r ge monies. I nto what accoun t ? Agree timetable for dra wi ng up statement of account up unti l th e ha n dove r date . What wil l h a p p en t o any s t a f f or c o nt rac t ors worki n g so lel y at tha t p r ope r t y ? T U PE ? What abou t an y compan y secretarial reco r ds ke p t by the outgoing agent, if any?

H as a new b a nk ac c o unt(s) bee n set up to comply w ith Co mm on ho ld & L easehold Refo r m Act 2002 and i s a Sect i o n 42 T r ust Account G e neral information and documentation Da ta b a s e of all l e ssee s n a me s , f la ts o r sh op un it and alte r n ativ e c o n t a c t a dd res s es w h e re approp r iate . O utstand i ng issues l i st. Ke ys for fr on t a nd any o t he r doors. 3 ye ars acc o un t s. 3 yea r s budg e t s. F l oor p la n s ( i f a v a il ab l e ). Con t ra ct or s deta i ls (n a mes , ad d res s a nd telephone numbers). C o py of all c o n t racts for pro vi sion of ser v i c es and goods. Ad v isors details (solic i tors , accounta n ts , bro k ers).

Copies of an y s e ction 20 Notic e s for major wor k s i ssued in t he past 3 years whether wo r ks ar e comp l ete d or du e; this needs particular care as the rules on section 20 changed at the end of 2012. Copies o f S t a t ut ory Rep o rt s ( Fire R i s k As s ess m en t R ep o rt , A s b e s to s R e g i ster , Health & Saf ety Report ). Li ft inspe c tions reports and/or LG 1 0 sheets. Copy schedules for all insurances (Buildings, Engineering, Directors and Officers, commercial cover on shops and any other policies in existence). Copy of a sample lease or if there are different leases, a copy of each type (preferably a copy of each flats lease).

Balance of service charge funds at date of hand over. Bank reconciliation at date of hand over. Audit of accounts up to date of hand over. Individual property files with day-to-day correspondence. 2

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Historic files (if available). Company Secretaria l Copy of Memorandum and Articles of Association. Statutory books including share register, register of transfers and seal. If this is not passed across obtain a copy of the most recent annual return from Companies House Items in italics are considered essential to enable proper management to take place. M ANAGEMEN T A GENC Y AGREEMEN T A pp e n dix i v T h e T a k eove r a n d Handove r Li s t s T he P ar ti es hereby agree that t h e Client shall ensure that the fol l o wi ng records , documents and information shall be made a v a il ab l e to t he Manager i n t ak i ng over managemen t of the Pro p e rty.

Description All d ocume n ts fi l es an d in f o rm a tion h an de d to t h e manag i n g agen t on t he take - on of t h e propert y and a l l d ocument ation , f i l e s, i ndi vidu a l o r co m pa n y created or conti n ued during the t i me of their management . D ocum e ntation to i nc l ude C D , D V D , Vide o re cor d s a nd ph o to g r a ph s. Timescale Wi t hin thr e e m o n t h s of cea s ing management. A The Takeover List B Th e Ha n d o v e r L i s t T he Parties h e r e by ag r ee that t h e M anager on ceas i ng to mana g e t h e Prope rty s h a l l m ak e ava ilab l e t o the C l i e nt the f o ll ow i ng r ec o rd s , d o c u ments a n d i n fo rmat io n .

Description A l l d o cu m en ts fil es a nd i n for ma t i on h a nd e d t o t h e managing ag e nt o n the t ake - o n of the p r o perty and all documentat i o n , files, i ndi v idu a l or compan y cr e a t e d or continued d uring t he t ime of th ei r ma n ag e ment . Doc u m e nt ation to include CD , DVD, Video r e c o rds and p hotographs Timescale Wit hin t hree m o nths of c easi n g m a na g e m e nt. 3

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The Property Copy of t h e L and Certificate. Plans and drawings if any of the site and buildings. Details of utilities and location of main stop-cocks etc. Details of any major works and long term agreements ongoing and copies of S.20 notices and responses given. Details of any major works and long term agreements planned and copies of any related S.20 notices and responses given. Details of plant, machinery and relevant documentation. Copies of statutory inspection reports. Arrangement for out o f h o ur s eme rge n ci e s . I nsuran c e C ontact detai l s of current brok er / i n sure r s. Or iginal o f sche d u l e a nd policy f o r th e prope r ty .

D etails o f m o st r ecent valuation of the property . Su m m a r y of c la i m s hi sto r y o ve r p a s t three y ea rs . Fil es on o pen insurance c l aim s an d agreement o n who w ill handle such. De t a i l s o f th i rd party and employers liability (including current and all previous certificates for employers liability where employer is not changing). Originals of mechanical e n gi neer i n g i n sura n c e a n d the l ast th r e e years' inspection r e po r ts . Contracts and contra c t o r s [ Re fe r also to AR M A Gui d anc e Note 30 o n Ri ght to Man ag e Insur a nc e and Contra c tor Notices . ] Details of all current contracts.

Details of regular contractors used and the scope of their duties and payment terms. Details of any current warranties. The lessees Originals or copies of all leases and deeds of variation and other licences etc. Copy of any current house rules. Details of any ongoing assignments. Names and contact details of all lessees, including those who are not resident. Details of any sub-let flats and their occupants. Schedule of ground rents payable. Schedule of service charge apportionments per unit. 4

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