Websters Accountants - Property Accounting & Property Auditors

The City of London Law Society Land Law committee has drafted service charge provisions to be used in leases, which  reflect many elements of the RICS Code of Practice on Service Charges in Commercial Property. The introductory notes warn that, despite the intended fairness of the clauses, “it may be appropriate in the case of a short term to limit the tenant’s obligations, whether through the exclusion of particular heads of expenditure or by agreeing an overall cap on the tenant’s contribution.”

Read the Office Building clause here

Read the retail specimen clause here

With poorly managed service charges remaining a frequent cause of dispute between owners and occupiers, the new RICS Service Charge Code of Practice has been developed with leading property bodies to improve standards and promote consistency, fairness, transparency and best practice in the management and administration of service charges in commercial property. Providing guidance and setting out clear best practice principles to solicitors, their clients and managers of service charges, the new Code is an essential tool for an industry looking to improve the quality of service to its customers.

Read the full code here