There was no agreement and no formal appointment was ever made. The complex had been managed by the developers until we took it over from them in June. She was a friend of one of the other directors. She sent a draft by email. But we never signed it. We have instructed another managing agent. We are seeking to replace her because of conflict of interest
How much notice have you given her?
When you say she is refusing to accept it, what exactly do youmean. Is she intending to carry on managing? I find that bizarre
Please see below for her exact words:
Unfortunately, whether you have signed the contract or not, it is valid and you cannot terminate as below as we have not breached the terms of it. The contract was in your possession for over 3 months before commencement and at no time during that period did you take the opportunity to alter any of the terms within. The terms were not interim, the contracted period is for two years.
I know we are doing the right thing but I need some help re the form of words to use to let her know we are serious and what legal options are available to us to force her out.
I will word the letter for you which is unusual for me and we arenot really supposed to do it but as it is relatively short and to the point
thank you for yourletter of the x the contents of which are noted.
You are entitled to youropinion and we have taken advice on your letter and your alleged contract andunfortunately your opinion is flawed.
The only contract thatexists between us is verbal and it is terminated on reasonable notice. We havealready given you one months notice (or whatever you have given) and thereforethis contract will terminate on X date.
We did not sign thecontract quite simply because we did not agree with the contents in it. Had weagreed with the contents, we would have signed it.
For the avoidance ofdoubt, we will pay you no further charges after that date and you will berequired to provide no service.
If you do not understandthe contents of this letter, we suggest you seek legal advice.
We can see no point inenter into any further correspondence and if you feel differently, you shouldissue proceedings. If you are minded to bring legal action, it will be defendedand we will seek costs against you.
Basically, you are telling her to get stuffed. I wouldn't enterinto lengthy correspondence. And even if her solicitor writes to you I wouldwrite back and tell them not to write to you again but issue proceedings whichyou will defend. There is no point in this exchanging absolutely zillions ofletters to no effect.
Does that answer the question? Can I assist further?
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That is absolutely brilliant!!! Thank you so much. You will get 100% rating from me! I just have one more question. This managing agent also owes £50,000 in unpaid service charges before we took over the managements. She simply used her relationship with one of the director to attempt to wipe off this debt. But we found out about it, as well as her attempts to How do we phrase this conflict of interest in this follow-up letter?
Many thanks for your help!!!
Mention the conflict of interest if you wish
I think you mean that the managing agent is owed £50,000 inunpaid service charge which they have not chased. You can put the following inthe letter then
Notwithstanding the above,we are of the opinion that you are a breach of contract because you have failedto collect the c £50,000 arrears of service charges owed by various defaultingtenants and you failed to deal with that in a timely manner or at all.
These should have beencollected by your predecessor, but if you as you maintain, you took on thebenefit their contract, (which is denied) you also took on the burden.
No. she managed the commercial units and simply refused to pay a portion of their charges.
I'm sorry, I don't understand.
Do you mean that she personally owes 50 grand?
the complex has 93 flats and 4 commercial units. The commercial units are owned by an investment company and they appointed her to manage the commercial units. So prior to June this year, the developers manage all the residential units directly but this agent managed the commercial units and reported in to the developers. During that time, she failed to pay some of the service charges and accumulated debts in excess of £50,000 on the grounds that she disputes them. We have now taken over the management of the complex and she's seeking to manipulate us into wiping off this debt. At the same time increasing the service charges for the residential leaseholders
I am seeking your help on how to phrase this in legal language to tell her that we have received the accounts from the developers which shows that she owes this money which she disputes and we need a credible third party to advise us on where the truth is.
I am either missing something here or it is late and I am tiredor I am stupid.
Unless she is the tenant how can she owe service charge?
Forgive me for being stupid but the tenants of the commercialunits pay the service charge to the management company in the managementcompany do the various jobs or arrange to have the management company do thevarious jobs.
I don't know how she accumulated debts or how she can dispute theservice charge which she should be collecting.
I think I'm missing something fundamental here.
The commercial tenants pay to her (because she was their managing agent) and then she pays on their behalf to the developers.
What changed is that in June this year we took over from the developers and she used her friendship with one of the directors to become managing agent for the entire complex
I understand that completely.
I don't know how she owes £50,000.
Either the tenants didn't pay her .
or she didn't hand the money over .
I don't know how she disputes it because it's not for her to dispute it is simply for her to collect the money and pass it over . the Tenants might dispute it but that is nothing to do with her. She appears, in effect, to be a glorified service charge collector .
I am off-line now until tomorrow but will pick this up at some stage as I will be online spasmodically. during the day
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