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Service charges in commercial property

The first two editions of the Service charges in commercial property Code of Practice set a marker for the standards of management required in commercial property. The Code has been endorsed by property bodies representing all sides of the property industry and widely acknowledged as a significant step forward for the property industry.

Its stated aims are: to improve general standards and promote best practice, uniformity fairness and transparency, the ensure timely issue of budgets and year end certificates, to reduce the causes of disputes, to provide guidance to solicitors.

Following an industry summit hosted by RICS it was clear that there were areas of the Code that required greater clarity, in particular in relation to service charge accounting, sinking funds and fees. The revisions in this Code reflect the feedback received from the industry.

The service charge accounting sample report is drawn from appendix C of the 3rd edition Code.