• Service charges must be reasonably incurred. They are not payable unless the standard of work and services rendered are reasonable. Advance payments must be reasonable.
• There is a right of reference to the LVT to determine all disputes in connection with service charges.
• There is a time limit of 18 months for L to recover service charges, unless it serves notice that such charges have been incurred and that T will be expected to contribute.
• L must offset any grant he receives against service charges passed onto T.
• All demands for service charges must be in writing and must contain L’s name and address. The charge is not payable until this information is given, and if L’s address is outside England and Wales the demand must contain an address in England and Wales.
• Money collected by L must go into a bank account (and is subject to a statutory trust).
• A summary of service charges can be demanded by T. T can also request sight of receipts and further financial information. There is a right for an audit by a Tappointed accountant or surveyor.
• There are complex and stringent consultation requirements before L can undertake works or enter into agreements for the provision of services.
• There are restrictions when L seeks to exercise rights of forfeiture and re-entry (this can only be done with the leave of the LVT, or if T has admitted the arrears).
• L cannot serve a valid s146 notice where the amount of service charges, etc total less than £350, or have been outstanding for less than three years.

One extra right to notice is that since October Ls of blocks of flats must, each time they send a demand for service or admin charge, supply Ts with information on their legal rights (as digested above). See [2007] 200 Property Law Journal 19. © Practical Lawyer