Recognition of a Tenants' Association — voluntary and FTT routes
LTA 1985 s.29: RTA can be recognised by (a) voluntary notice of recognition from the landlord; or (b) FTT certificate where landlord refuses (FTT grants recognition if: majority of qualifying tenants; appropriate constitution — chairman, secretary, treasurer, rules; genuine representation). 'Qualifying tenant' = tenant liable to pay service charges under their lease (long leaseholders only — not AST tenants). Landlord can withdraw recognition but RTA can immediately re-apply to FTT for certificate; FTT certificate cannot be withdrawn by landlord unilaterally.
- Voluntary recognition: landlord issues written notice of recognition — avoid refusing recognition if majority of leaseholders are involved; refusal triggers FTT application
- FTT certificate application: association must demonstrate majority support; LEASE model constitution widely accepted by landlords and FTT
- Withdrawal of recognition: counterproductive — triggers FTT re-application and antagonises leaseholders; often accelerates Right to Manage proceedings
- RTA is for leaseholders paying service charges — NOT available to AST tenants who pay rent only (different statutory framework applies to AST tenants)
RTA rights — s.20 consultation, managing agent, accounts and Right to Manage risk
Once recognised, RTA gains substantial rights: (1) s.20 consultation on qualifying works (>£250/flat): Notice of Intention (30-day response period; RTA nominates contractor); Notification of Estimates (30-day response period; must include RTA nominee's estimate); landlord must have regard to observations; failure to consult: recovery capped at £250/flat regardless of actual cost. FTT can grant dispensation from consultation (e.g., emergency works). Qualifying long-term agreements (>£100/flat/year): same procedure with £100/flat cap if consultation not followed. (2) Managing agent: notify RTA before appointment; consider representations (but not binding). (3) Accounts inspection (s.22): 21 days to produce last 12 months' accounts. Right to Manage (CLRA 2002): RTM company can take over management without landlord consent where qualifying criteria met.
- s.20 consultation: three-stage process (Notice of Intention → Notification of Estimates → (if non-RTA contractor) Notice of Reasons); total consultation period approximately 3-4 months minimum
- Failure to consult: even for major works (e.g., £50,000 roof replacement on 10-flat block), only £250 per flat recoverable from leaseholders if s.20 not followed — potentially leaving £47,500 irrecoverable
- FTT dispensation from s.20: available for emergency works (e.g., urgent roof repair after storm damage) — apply to FTT promptly after commencing emergency works
- Right to Manage risk: qualifying building (not more than 25% commercial; no resident landlord exception) — leaseholders can set up RTM company and take over management without landlord consent or compensation