The guide aims to help conveyancers, property owners, and stakeholders navigate changes in the new legislation
The Conveyancing Association (CA) has released a comprehensive guide, detailing key sections of the Leasehold and Freehold Reform Act 2024, which will come into force on July 24, 2024.
The guide aims to help conveyancing firms, property owners, and other stakeholders understand and navigate the significant changes introduced by the new legislation. It provides a detailed overview of four critical points of the law, addressing updates to the Building Safety Act 2022 and regulations concerning rentcharges.
Key sections covered by the guide include regulation of remedies for rentcharge arrears, outlining the formal notice process required before seeking payment for arrears, requirements for including proof of the rent owner’s title and the document establishing the rentcharge, guidelines on the proper methods of serving notices, information on the Secretary of State’s authority to limit fees related to arrears recovery actions, and potential restrictions on recovery methods for regulated rentcharges created before 1977.
It also includes recovery of legal costs through service charge, with expanded applications of Remediation Contribution Orders (RCOs) to recover costs incurred since June 28, 2017, and clarification on the inclusion of legal and professional service costs in service charges related to RCO applications.
The repeal of Section 125 of the Building Safety Act 2022 is also covered, explaining the implications for landlords, leaseholders, and building safety defect remediation.
Additionally, the new CA guide details higher-risk and relevant buildings insolvency notifications, introducing new obligations for insolvency practitioners to inform local authorities and fire and rescue services about insolvencies involving responsible persons for high-risk or relevant buildings. This aims to enhance safety oversight and ensure prompt action to manage potential building safety risks.
CA member firms can download the new guide from the trade body’s website.
“The Leasehold and Freehold Reform Act 2024 introduces critical changes that will significantly impact the conveyancing process,” said Beth Rudolf (pictured), director of delivery at the Conveyancing Association. “Our new guide is designed to provide firms with the necessary information to understand these changes and integrate them into their practices effectively.
“By familiarising themselves with the new requirements, conveyancing firms can ensure compliance and better serve their clients in managing leasehold and freehold properties. The Act addresses several important areas, including the regulation of rentcharge arrears, recovery of legal costs through service charges, and new notification requirements for high-risk buildings. These changes are pivotal in enhancing building safety and transparency in property management.”
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