The difference between a reserve fund and a surplus fund
Webb, Phil
The difference between a reserve fund and a surplus fund - 2007 - Lovells Real Estate Quarterly June 2007, 8-9(2) .
Highlights a recent legal case which examined the ownership of an accrued excess paid on annual service charges. The question was whether the excess remained the property of the tenant or should be treated as a reserve fund held by the landlord. It was found that although reserve funds will belong to the landlord and not be returned to the tenant, surplus service charge should be paid back. This was in the case of no specific lease terms stating otherwise. Makes reference to the RICS Code of Practice on service charges.
BROWN'S OPERATING SYSTEM SERVICES LTD V SOUTHWARK ROMAN CATHOLIC DIOCESAN CORPORATION
SECRETARY OF STATE FOR THE ENVIRONMENT V POSSFUND
United Kingdom--
The difference between a reserve fund and a surplus fund - 2007 - Lovells Real Estate Quarterly June 2007, 8-9(2) .
Highlights a recent legal case which examined the ownership of an accrued excess paid on annual service charges. The question was whether the excess remained the property of the tenant or should be treated as a reserve fund held by the landlord. It was found that although reserve funds will belong to the landlord and not be returned to the tenant, surplus service charge should be paid back. This was in the case of no specific lease terms stating otherwise. Makes reference to the RICS Code of Practice on service charges.
BROWN'S OPERATING SYSTEM SERVICES LTD V SOUTHWARK ROMAN CATHOLIC DIOCESAN CORPORATION
SECRETARY OF STATE FOR THE ENVIRONMENT V POSSFUND
United Kingdom--