dispensation of consultation requirements
📖 What is dispensation of consultation requirements? Meaning and definition
This term refers to a decision made by a First-tier Tribunal (Property Chamber) that permits a landlord to proceed with works or enter into qualifying long-term agreements (QLTAs) without first carrying out the full consultation process with their tenants, as normally required by law. The application for such a dispensation is made under Section 20ZA of the Landlord and Tenant Act 1985.
The consultation requirements, outlined in Section 20 of the 1985 Act, are designed to protect tenants by ensuring they are informed and have an opportunity to comment on significant works or contracts that will result in service charges. However, there are circumstances, often urgent, where following these requirements fully before starting work is not practical or possible.
When a landlord applies for dispensation, the Tribunal's role is to decide whether to grant it, either for all or some of the consultation requirements. The Tribunal considers the specific circumstances of the case, such as the urgency of the works (e.g., Japanese knotweed removal, urgent lift repairs, or securing energy supply contracts). It's important to note that granting dispensation does not mean the service charge costs themselves are automatically approved as payable or reasonable; that remains a separate issue for potential future determination.
📋 Requirements
- An application must be made to the Tribunal under Section 20ZA of the Landlord and Tenant Act 1985.
- The application seeks to dispense with consultation requirements related to Section 20 of the 1985 Act.
- The Tribunal considers whether to grant dispensation for all or any of the consultation requirements.
- The application does not concern the reasonableness or payability of service charge costs.
📝 Procedure
- The Applicant (landlord) submits an application to the Tribunal.
- The application details the reasons for seeking dispensation, often related to urgent works or QLTAs.
- The Tribunal reviews the documentation and information provided by the Applicant.
- The Tribunal makes a determination and decision on whether to grant the dispensation.
💡 Examples
- A landlord applied for retrospective dispensation because they had already entered into a qualifying long-term agreement for energy supply without consulting tenants, and needed the Tribunal's approval to bypass the consultation rules.
- A property management company sought dispensation for urgent Japanese knotweed removal, as the immediate nature of the problem meant they could not follow the full consultation process beforehand.
- A housing estate management applied for dispensation to carry out urgent repairs to a lift, where the safety and functionality issues required immediate action, making prior consultation impractical.
- A landlord of multiple properties applied for dispensation for energy supply contracts affecting over a thousand homes, highlighting the scale and complexity of the agreements.
📚 Legal basis
- Landlord and Tenant Act 1985
❓ Frequently asked questions
What does 'dispensation' mean in this context?
In this context, 'dispensation' means the Tribunal has given the landlord permission to skip or bypass the usual legal steps for consulting tenants about major works or long-term contracts.
Why would a landlord need a dispensation?
Landlords typically need a dispensation when there's an urgent situation, like emergency repairs (e.g., a broken lift or invasive plant removal), or when they need to quickly secure essential services like energy supply, making it impractical to follow the full consultation process.
Does a dispensation mean I have to pay the service charge costs?
No, a dispensation only deals with the consultation process. It does not decide whether the service charge costs themselves are reasonable or payable; that is a separate issue that could be challenged later.
What is Section 20ZA of the Landlord and Tenant Act 1985?
Section 20ZA is the specific part of the Landlord and Tenant Act 1985 that allows landlords to apply to the First-tier Tribunal for dispensation from the consultation requirements.
Can a dispensation be granted after the works have already started or finished?
Yes, the Tribunal can grant 'retrospective dispensation,' meaning it can approve the bypassing of consultation requirements even after the works have begun or been completed, as seen in cases involving energy supply contracts.
Who decides if a dispensation is granted?
The First-tier Tribunal (Property Chamber) is the body that considers applications and makes the decision on whether to grant a dispensation of consultation requirements.