The Law Society is urging conveyancers to use the new Freehold Management Enquiries (FME1) form.
Created and endorsed by more than 14 cross-industry trade and representative bodies, including the Law Society of England and Wales, the new form is a standardised questionnaire designed to elicit information where a property being sold is a managed freehold – that is to say where a freehold property has a shared amenity requiring maintenance either through an estate rent charge or covenants set out in the title.
The information required by the FME1 is expected to come from the rent charge owner, the management company, the managing agent or any appointed representative of them, and would provide greater certainty around the provision of the information required to ensure the conveyancing process can progress.
The hope is that use of the new FME form will make sure prospective purchasers are able to access full details including:
- any contribution required,
- who organises the maintenance arrangements for the shared areas/amenities,
- likely increases to these amounts, and
- who owes what.
Under the current system, each conveyancing firm raises their own preferred questions. This, it is suggested, creates confusion and extra work, especially where the seller’s conveyancer does not ask all of the questions required by the buyer’s conveyancer.
Further details of the form can be found on the Law Society website