Tenant Successfully Discharges Management Order
📌 In brief
In this case, the Tribunal allowed the discharge of a management order, enabling the property management to return to the a company. The decision was based on the tenants' belief that a property manager was no longer necessary.
⚖️ Legal holding
Under the Landlord and Tenant Act, the tribunal has the authority to discharge an order appointing a manager.
📖 What the law says
The appropriate tribunal can appoint a manager to handle certain management functions or act as a receiver when specific conditions are met. These conditions include breaches of obligations related to property management, unreasonable service charges, or non-compliance with approved codes of practice. Additionally, the tribunal must find it just and convenient to make the order based on all the circumstances.
Plain-English explanation — does not replace advice from a solicitor.
📖 Technical summary
The tribunal discharged the management order under the Landlord and Tenant Act, allowing the management of the property to revert to the company.
📜 Headnote Official document
The Tribunal discharged the management order appointing a manager under the Landlord and Tenant Act 1987, allowing the property management to revert to the freehold management company.
📚 Full judgment Official document
OUTCOME: Allowed
© CROWN COPYRIGHT
FIRST-TIER TRIBUNAL PROPERTY CHAMBER (RESIDENTIAL PROPERTY) Case reference :
LON/00AX/LVM/2021/0001 V:CVP REMOTE Property : [ADDRESS], [POSTCODE] Applicant(s) : [redacted] being the directors of [NAME]) Limited Respondent(s) : [NAME]) [RESPONDENT] (1) [NAME] (2) Type of application : Variation of order for appointment of a manager Tribunal Members : Judge [NAME] : By video hearing Date of hearing and date of decision : 28 June 2021; 29 June 2021
DECISION
BACKGROUND (1) The applicants seek the variation of an order appointing a manager under section 24(9) of the Landlord and Tenant Act 1987 (the Act). (2) Mr [APPELLANT] is the present tribunal-appointed manager (the [NAME] respondent). (3) The existing order of appointment was made on 17 June 2019, (the management order) appointing Mr [NAME] of [NAME]. Prior to that on 30 October 2017 the Tribunal appointed Mr [NAME] as the manager. (4) All the tenants in the property (the applicants) wish to discharge the present manager forthwith as the applicants are in full agreement that they no longer believe a property manager is necessary.
2 (5) The applicant seeks a discharge of the order so that the management of the property can revert to the [COMPANY] (first respondent) of which the applicants are the four directors. (6) Directions were issued by the Tribunal dated 8 April 2021 directing that there be a video hearing to deal with this application. (7) The tribunal did not inspect the property as it considered the documentation and information before it in the trial bundle enabled the tribunal to proceed with this determination and also because of the safety concerns, restrictions and regulations arising out of the Covid-19 pandemic. (8) This has been a remote hearing which has been consented to by the parties. The form of remote hearing was coded as V:CVPREMOTE - use for a hearing that is held entirely on the Ministry of Justice Cloud Video Hearing Platform with all participants joining from outside the court. A face-to-face hearing was not held because it was not possible due to the Covid -19 pandemic restrictions and regulations and because all issues could be determined in a remote hearing. The documents that were referred to are in a bundle of many pages, the contents of which we have recorded and which were accessible by all the parties. Therefore, the tribunal had before it an electronic/digital trial bundle of documents prepared by the parties, in accordance with previous directions. (9) The lessee applicants attended the hearing and represented themselves but the [NAME] respondent did not attend. An email was sent to the Tribunal by the [NAME] respondent prior to the date of the hearing explaining why he was not attending.
DECISION 1. Section 24(9) of the Act provides that “The appropriate tribunal may, on the application of any person interested, vary or discharge (whether conditionally or unconditionally) an order made under this section; and if the order has been protected by an entry registered under the Land Charges Act 1972 or the Land Registration Act 2002, the tribunal may by order direct that the entry shall be cancelled.” Pursuant to the terms of that provision this Tribunal orders that the management order be discharged upon the terms set out below.
2. If the management order has been protected in the manner set out in the previous paragraph the Tribunal orders that the entry be cancelled.
3. The first respondent will as soon as possible open a bank account in its name at a [COMPANY].
4. The management order shall be discharged seven days from the date that the first respondent has opened such a bank account in its name (the end date)
5. The [NAME] respondent must within two weeks of the end date prepare final closing accounts and send copies of the accounts to the applicants
3 and the first respondent, who may raise queries on them within 7 days; and answer any such queries within a further 14 days. 6. The [NAME] respondent must reimburse any unexpended monies to the first respondent within two weeks of the end date or, in the case of a dispute, as decided by the Tribunal upon an application by any interested party.
7. In the event of a dispute regarding the reimbursement of unexpended monies at the end of the manager’s appointment, the [NAME] respondent, a tenant, or the first respondent may apply to the tribunal for a determination as to what monies, if any, are payable, to whom, and in what amount.
8. Within 14 days from the end date the [NAME] respondent must provide all necessary information to the first respondent to provide for an orderly transfer of responsibilities, to include the transfer of all accounts, books buildings insurance records and any other records relating to the Property, including a complete record of all unpaid service charges as well as all funds relating to the Property including uncommitted service charges and any monies standing to the credit of a reserve or sinking fund.
Name: Judge Professor Robert Abbey Date: 29 June 2021
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- First-tier Tribunal (Property Chamber) First-tier Tribunal Extends Management Order for Two Years
- First-tier Tribunal (Property Chamber) First-tier Tribunal Grants Rent Repayment Order for Unlicensed Property
- First-tier Tribunal (Property Chamber) Tenant Secures Property Manager Extension Until 2027
- First-tier Tribunal (Property Chamber) Tenant Wins Rent Repayment Order for Unlicensed Property
- First-tier Tribunal (Property Chamber) Tribunal Appoints Manager Due to Breach of Lease Obligations
- First-tier Tribunal (Property Chamber) Tribunal varies management order and joins RTM Companies
- First-tier Tribunal (Property Chamber) First-tier Tribunal Extends Management Order for Residential Property
- First-tier Tribunal (Property Chamber) First-tier Tribunal Grants Rent Repayment Order Against Unlicensed Landlord
- First-tier Tribunal (Property Chamber) Tenants Win Service Charge Dispute Against Unreasonable Landlord
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The tenants collectively agreed that a property manager was no longer needed.
- The tenants wished for the property's management to return to their company, of which they are directors.
- The current manager did not attend the hearing to contest the application.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal allowed the discharge of the management order, reverting property management to the freehold management company.
Who was involved?
Tenants and the freehold management company were involved.
How did the court decide, and why?
The court decided based on the tenants' agreement that a property manager was no longer necessary.
Which laws or rules were applied?
The Landlord and Tenant Act 1987 was applied.
What was the argument that mattered most?
The argument that mattered most was the tenants' belief that a property manager was no longer necessary.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation may also be able to discharge a management order if they no longer believe a property manager is necessary.
What evidence or documents mattered?
Documentation and information provided by the parties were considered.
Can a decision like this be appealed?
Decisions like this can be appealed to a higher court.
Is it worth getting a solicitor for a case like this?
It is always recommended to get advice from a qualified solicitor for cases like this.
