The process of exercising the Right to Manage (RTM) involves several legal and procedural steps. To ensure a smooth and successful transition, we are working with a professional consultancy, which specializes in guiding residents through the RTM process. Here is an overview of the key steps involved:
1. Forming the RTM Company
The first step in the RTM process is forming a legal entity known as the RTM Company. This company will be composed of the leaseholders who wish to participate in the management of the building. With the help of consultancy, we will establish this company and ensure it complies with all legal requirements. The RTM Company will be responsible for managing the building once the process is complete.
2. Serving Notice of Invitation to Participate
Before formally beginning the RTM process, we are required to serve a Notice of Invitation to Participate to all qualifying leaseholders in the building. This notice invites them to join the RTM Company and explains their rights and the benefits of getting involved. The consultancy will assist us in drafting and distributing these notices, ensuring that every leaseholder is properly informed.
3. Serving the Claim Notice
Once the RTM Company is formed and the Notice of Invitation to Participate has been served, the next step is to serve a Claim Notice on the freeholder (the landlord). This legal document informs the freeholder that we intend to take over the management of the building. The consultancy will handle the preparation and service of this notice, making sure it meets all legal standards and deadlines.
4. Freeholder’s Response
After the Claim Notice is served, the freeholder has a set period (usually one month) to respond. They may accept the claim, in which case the RTM Company will take over management after a handover period. If the freeholder challenges the claim, the consultancy will guide us through the necessary steps to address any disputes, including representation in a tribunal if needed.
5. Tribunal Process (if necessary)
In some cases, the freeholder may challenge the RTM claim, which could lead to a tribunal. This tribunal will decide whether the RTM Company has the right to take over management. The consultancy has experience in handling such cases and will provide legal support and representation to ensure our interests are protected throughout the process.
6. Handover and Management Transition
Once any challenges are resolved, and the RTM claim is accepted, there will be a formal handover of management responsibilities from the freeholder to the RTM Company. The consultancy will oversee this transition, ensuring that all necessary documentation, contracts, and financial accounts are properly transferred.