As more developments achieve a Right To Manage and so rid themselves of Firstport, the thorny question of passing on development service charges to the new company arises?
It does seem that in an increasing number of cases Firstport are proving a tad reluctant to hand over all the funds due in a timely manner.
For the avoidance of any doubt, Firstport are under a legal obligation to hand over all unspent sums to the Right to Manage Company including any funds in ther development reserve account on the date of acquisition or as soon as reasonably practicable.
It is strongly advised that a full audit of the development accounts are carried out by the RTM company as it has often been noted that Firstport have due to "administrative errors" supplied the wrong figures to the RTM company (which somehow always favour Firstport!)
It would seem to be "reasonable" if perhaps 10% of the development funds were held back for a maximum of 3 months. But that means the remaining 90% is due to the RTM company on takeover day.
For any RTM companies finding themselves in this position, you must serve notice on Firstport that you give them until the xx/yy to handover (state amount)
If this is not complied with within 14 days of the set date, the RTM company can issue a summons in the County Court.
