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Service charges in commercial property

With poorly managed service charges remaining a frequent cause of dispute between owners and occupiers the second edition of the RICS Service Charge Code of Practice (April 2011) has been developed with leading property bodies with the following objectives:

  • to improve general standards and promote best practice, uniformity, fairness and transparency in the management and administration of service charges in commercial property;

  • to ensure timely issue of budgets and year-end certificates;

  • to reduce the causes of disputes and to give guidance to resolving disputes where these do occur;

  • to provide guidance to solicitors, their clients (be they owners or occupiers) and managers of service charges in the negotiating, drafting, interpretation and operation of leases in accordance with best practice.

By providing guidance and setting out clear best practice principles to solicitors, their clients and managers of services charges the new RICS Code is an essential tool for an industry looking to improve the quality of service to its customers.