Frequently asked questions

What is “the factor”?
Your Factor is a professional property manager who works for you and along with the other owners helps to maintain your property to the highest possible standard and to protect your investment. They will organise tradesmen for common repairs and maintenance, including cleaning, gardening, grass cutting, repairs to buildings, to name but a few.

What is common property or common areas?
These are parts of your property/development, which do not belong to you exclusively. For example, if you live in a flat this will include your roof and entrance or shared amenity area. In other words common areas of ownership which are shared between you and your other neighbours within the block/development. No matter the type of property or development, if there are common areas then each owner has a legal responsibility for the repairs, maintenance and upkeep of these areas and each one has to pay their share, they cannot opt out.

Who owns what and who has to pay?
The Deed of Conditions or your Title Deeds for the property you own will determine the share for each owner and what areas are described as common.

Why bother to look after common property?
It is important you keep your property in good order. A scruffy property will not grow in value; it can prove difficult to sell and will be unpleasant to stay in and unpleasant for your visitors. If you let the standard of the property deteriorate, it then becomes much more expensive to repair and bring the standard back up again. A little care frequently will keep it looking good – it will preserve your investment and enhance its value.

Where then does the factor come in?
The Factor is appointed either by a majority of owners, or initially by a developer for a new property. Sometimes Title Deeds insist upon a Factor particularly if the property has just been built. The developer will tell you if initially one is to be appointed for the first year of a new development. Thereafter you and your neighbours can agree to appoint a particular Factor, provided there is a majority. Normally if a Factor is appointed there will be a contract covering their duties and the terms of their appointment. We would recommend you take time to read this contract and the scope of their duties. The factor is there to save you time and hassle, especially if some of the other owners are apathetic about the upkeep of the property. The Factor can make decisions up to the sum of £250.00 per block per item (figure for the year 2007/08, may be subject to adjustment on some future date) on your behalf and organise the work on behalf of the owners, whether it be repairs to common property, common maintenance or other issues. If some owners do not pay their share of the factoring account, the factor will make every attempt to obtain the money from them directly by going to court if necessary, without you having to be directly involved. In the event of any court action being raised it will be on behalf of the Owners against any third party, prior to this happening instructions will first be taken from the Owners, as they will be liable for all legal costs incurred and the outstanding debt should it not be recovered.

Can I do the factoring myself?
Yes, of course you can, but you will have lots of snags to deal with as people have found out in the past. Certainly not all owners will be as interested in the property as you are. When problems arise it can be a real headache to get action – every little problem needing a majority of owners to agree before the work is put in hand – absentee owners, owners on holiday, vested interests etc.

What problems?
The owners have to agree amongst themselves what repairs are necessary and which maintenance company to use, getting agreement from sometimes over fifty different households is by no means easy. Sometimes owners cannot agree on what repairs are necessary and indeed some may want to do more improvement work than others. Some owners may not care about the state of the property at all and would be quite happy to let it deteriorate rather than spend any of their own money keeping the property up to standard. Owners such as these can hold up essential repairs for ages and infuriate the others who want to get the work done and keep up the standard of the building. Even when agreement has been reached it can be difficult to collect all the money and who is responsible if someone doesn’t pay their money, and who holds the money? You may end up with the tradesman’s bill on your doorstep and you may have to pay it then you may have to take your neighbour to court to recover their share or you could be faced with legal action by the tradesman for non payment of the account. All this can cause bad feeling and tradesmen sometimes refusing to take on work from groups of neighbours because of these difficulties.

How does the factor operate?
The Title Deeds or Deeds of Conditions will set down the rules for undertaking factoring duties in respect of your property/development. Your solicitor should provide this document for you, at the time of purchase. It is important that you read the details within it.

During our regular routine inspections we will endeavour to identify defective items which require attention, however we are acutely aware that we will never pick up all the defective items on a development and we would be grateful for the owners help in this matter by notifying us of items of defects when they notice them.

How is the factor paid?
The factor is paid twice a year this is when invoices are sent to you for your share of any common repairs, insurance, gardening cost, cleaning and the like, this is after the payment of tradesmen’s accounts and other expenses run up on your behalf. These invoices will include the management fee which is likely to be in the region of £40 per six month period (set for the year 2007/08).

Why is a common pool (float) required?
As soon as the factors are appointed they will require a payment of £100.00 for a float, which allows the factor to pay tradesmen’s accounts during half yearly periods between invoicing. Upon settlement of the 6 monthly accounts these monies return the float to its original level. As repairs and general maintenance of property/developments do happen at any time, it is important that the factor can pay the tradesmen without delay, which will ensure that they will continue to undertake work at competitive rates on behalf of owners in the future when problems arise. The float allows the factor to do this without the possibility of carrying any burden of expense which they are prohibited from doing.

Will I ever get my money back?
Yes - when you decide to sell your property as part of the conveyancing, your solicitor should contact us to seek information on recurring charges along with any ad-hoc accounts during the period between the last 6 monthly account and the notification date. At that time, an account will be apportioned and the balance of your float refunded back to you, subject to complying with the Terms of the Deeds and settlement of all accounts. Should the notification from the seller or the sellers solicitor be received after the date of transfer of ownership you may be liable for all charges up to the date of notification irrespective of the date of sale of the property. It is also likely that there will be an administration charge for compiling this account as it will involve us in fees to a third party.

Will the factor run up large bills?
No. The Factor will have authority from the contract to carry out repairs and maintenance to the common parts, provided that the anticipated cost of any one item at the time when it is instructed does not exceed £250.00 per block (set for the year 2007/08). In an emergency, such as roof repairs or Health and Safety issues, the Factor may exceed this limit. Otherwise estimates will be obtained, distributed and instructions will be taken from you and your neighbours for this work. For this additional work payments will be required in advance. The Factor will also have additional authority to exceed their £250.00 limit in respect of the annual contracts for cleaning and gardening.

To avoid serious deterioration of the building we will propose major works such as the external or internal re-decoration of the communal areas when appropriate. Before any works of this nature are carried out, we will obtain at least two competitive quotes for the work. Copies of the quotes, and the resulting cost per unit, will be forwarded to the owners for consultation. The consultation period will last 21 days during which time we request that the owners reply with their views on the planned work and cost. More importantly though, we require your selection or refusal for the quoted work. A majority of owners, as stated in the Title Deeds, is necessary before any major work can be undertaken.

Are there any other advantages?
Yes. The Factors will save you money, as they act for lots of people just like you. The Factor can obtain special prices as a result of bulk buying from maintenance companies and also using their services on a regular basis. These discounts can mean a considerable saving and also a quick response time from the contractors in the event of an emergency. The Factor is employed by a multi-disciplinary surveying office where the expertise of experienced surveyors can be called upon should problems arise with your property. During our contracted period with the owners, we are always mindful that we act on behalf of the owners of the property and our aim is to work in partnership with the owners, to build a good working relationship, one, which is built on trust. We welcome at any time comments you may have regarding your property, these comments are much appreciated and help us to Factor and maintain your property and maintain your investment.

What guidelines does the factor work to?
Within this pack is a copy of the Conditions of Management. We conform to these guidelines together with the code of conduct as set out by the Royal Institution of Chartered Surveyors, of which we are members.