New guidance: RICS announces new Professional Statement on service charges
The Royal Institution of Chartered Surveyors (RICS) has announced a new edition of Service Charges in Commercial Property, due to take effect from 1 April 2019.
This update was published in Legal Alert - January 2019
Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.
The publication comprises a Professional Statement (rather than a Code as before) setting out and explaining core principles for property owners and managers in relation to:
- recoverability of service charges
- issue of budgets and audited accounts
- apportionment of service charges
- relationship with lease terms
- holding service charges, and accounting for interest
- dealing with disputes.
Whereas the previous codes were merely guidance, the new Statement contains mandatory requirements for RICS members and regulated firms.
Parties to existing leases at 1 April 2019 may wish to open negotiations to vary them. New leases should comply with the Statement.
- 1 April 2019
- Download the Professional Statement from the RICS website
Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.
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