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Service Charges in Commercial Property, 3rd edition

Service Charges in Commercial Property, 3rd edition

The first two editions of this RICS Code of Practice set a marker for the standards of management required in commercial property. Endorsed by property bodies representing all sides of the property industry, and widely acknowledged as a significant step forward for the industry, the Code is now available in its 3rd edition.

Its stated aims are to:  

  • Improve general standards and promote best practice, uniformity, fairness and transparency
  • Ensure the timely issue of budgets and year end certificates
  • Reduce the causes of disputes
  • Provide guidance to solicitors.

Following an industry summit  hosted by RICS it became clear there were areas of the 2nd edition that required greater clarity, particularly in relation to service charge accounting, sinking funds and fees. The revisions in this 3rd edition reflect the feedback received from the industry.

As of 1 April 2019, a new professional statement will supersede the previous three editions which were published as codes of practice.