No reciept forthcoming for paid Management Company Fee?

beecashman

Hi all,

I have just been in contact with my Management Company requesting a reciept for the maanagment fee (for my apartment block) i have paid a couple of months ago. I was told that they do not issue reciepts for these payments. Surely this cannot be correct/lawful, does anyone know of any legislation or similar information i can quote from that would be of assistance in my reponse when insisting on the issuing of a reciept.

Thanks in advance,

beecashman

Paulw

I'm not sure of any legislation that would specifically cover this.

Our management agent doesn't issue receipts either.

The_Morrigan

Would you not at least be entitled to confirmation of receipt of monies paid?
I know our crowd sent a letter confirming receipt of the first payment - since the first years payment I've been on quarterly direct debit and I get a letter telling me when the debits will be made at the start of the year.

beecashman

Thanks for the reply Paul, just seems crazy to me. I even get a reciept from the local shop for buying a mars bar, but not for forking out well over a grand for something.

paddydriver

That sounds dodgy that they do not have a policy of issuing receipts - any landlord that is renting an apartment/house and paying management fees would have to get a receipt to have on record when making a tax return...

Even on a personal level I would demand a receipt - I would think you must be legally entitled to it via some level of consumer/trade act etc.

Edit - this assumes said landlord is making a tax return

beecashman

True NiMhaoldearg, a confirmation of monies recieved is the least i expected. As it happens I have only in the last week become a landlord, and as you say paddydriver i will indeed need a reciept for making tax returns.

The_Morrigan

beecashman wrote: »

True NiMhaoldearg, a confirmation of monies recieved is the least i expected. As it happens I have only in the last week become a landlord, and as you say paddydriver i will indeed need a reciept for making tax returns.

Did they send you a letter requesting the amount to be paid?

I would simply ask them to provide you with a letter or email confirming they received the money - that you need it in writing for tax purposes.

I'm not sure how the tax works for you landlords, but would the invoice coupled with proof of payment from the bank suffice? Like if it was a direct debit it should have a narrative of the company, or if you paid by cheque you can obtain copies of it, if it was a lodgement you should have the giro stamped by the cashier in the branch.

Paulw

beecashman wrote: »

Thanks for the reply Paul, just seems crazy to me. I even get a reciept from the local shop for buying a mars bar, but not for forking out well over a grand for something.

When you buy from a shop, you're covered by consumer law, which requires a receipt.

In this case, you're not buying anything.

But, I'm surprised they won't issue a receipt or statement of your balance, upon request.

Ours, at least, would do that.

The_Conductor

Ditto with our management company- no receipts are issued in due course. You can however request a certificate of good standing from the company secretary- which states that you are up-to-date with your management fee. Seperately a schedule detailing the management fee for the last few years, would normally be enclosed with the certificate.

Its actually quite normal for management companies to not issue receipts.......

silja

Our management company doesn't issue reciepts (not sure if they would if you insisted, I never asked.). I pay by cheque, so I have a papertrail.

Victor

Have you already been issued an invoice?

convert

For future payments it might be worthwhile paying by a 'traceable' method such as cheque or DD. That way you'd have your own record of paying the fee and wouldn't be relying on a management company to issue you with a receipt or acknolwedgement of payment.

Tigger

Victor wrote: »

Have you already been issued an invoice?

if you have then thats all they are obliged to do
if not they are obilged to give some form of demand under the supp;y of goods and services act 1980

The_Conductor

Tigger wrote: »

if you have then thats all they are obliged to do
if not they are obilged to give some form of demand under the supp;y of goods and services act 1980

Management Companies are legal entities and any disputes concerning management companies are dealt with solely by the ODCE.

A Management Company is liable to corporate governance, similar to any other legally constituted company.

Your Managment Fee- is a membership fee- and if requested, a Management Company is legally obliged to issue a certificate of membership- which would inform whether the holder is in good stead and can sell the property, or not. A property cannot be sold, without such a certificate- and the lapse of such a certificate can have mortgage implications for such properties.

As a legal entity, a Management Company is obliged to inform all members in good stead, of its AGM, and follow the procedures to hold an AGM as detailed under the Companies Act.

Legally the Management Fee- is a membership fee- and is not for the supply of goods and services. The Management Company must however detail all income and expenditure (as must any Company) to its shareholders.

Tigger

That's not how i understand it

Service charges
Members of the management company are entitled to information from the company to substantiate the level at which the rate is being set.
The company should provide you with as much information as possible on how last year's budget was spent, and how it has calculated the charge for the forthcoming year.
The directors should also consider providing detailed income and expenditure information in relation to service charges.

So you are part of the company and may own part of it but it is still a charge levied by the company on each unit covered by the company

Tigger

Different forms of company
Management companies can come in different types, often depending on the stage of development of the properties:
At one end of the scale, a management company may be set up by the developer or builder even before construction starts on the scheme
Then as more units are sold, each buyer becomes a member of the management company (on completion of their purchase transaction and receipt of certificate of membership). But the developer often retains the largest shareholding, and therefore continues to control the management company
At the other end of the scale is a finished development where all units have been sold, and the management company is now totally owned by the householders - perhaps after a residents' association has lobbied the developer for more control

Added

beecashman

Thanks everyone for your contributions, all your comment have been of great assistance. The Management fee had been disputed and a lower more realistic figure was eventually agreed upon and paid in full, however as the amount paid did not correspond with the original invoice so i wanted to get a reciept. I have in the interm requested a certificate of good standing (thanks smccarrick) so we will see what comes of that. Thanks Trigger for the extra info too. Oh and now for my next trick which is to get on to the ODCE as we have been refused an AGM for 2 years now....god theres alot to be said for just buying a house! Thanks again folks.