What is an RMC?
A Residents’ Management Company (RMC) is a company which is usually set up by the original developers which consists of equal shareholders or members amongst the Leaseholders.
The RMC is therefore responsible to manage, repair and maintain the communal areas and the structure of the building which they can achieve by either self-managing or by appointing a managing agent.
If you are unsure whether your property comes under an RMC you can refer to your Land Registry Title document and your lease which you will have signed at the point of purchase.
RTM vs RMC
What is the difference between an RTM & RMC?
RTM
The Right to Manage (RTM) is a statutory right that gives leaseholders the ability to take control of the management of their building through a formally established RTM Company. This means that leaseholders can assume responsibility for day-to-day management tasks: such as maintenance, repairs and service charges. Without having to prove any fault on the part of the freeholder.
Gaining RTM requires following a legal process, which involves serving notices on the freeholder, forming the RTM Company and meeting the statutory requirements set out in the Commonhold and Leasehold Reform Act 2002. Once completed, the RTM Company legally takes over the management responsibilities from the freeholder.
RMC
A Residents’ Management Company (RMC) is typically established by the original developer when a building is first constructed. It is created as part of the lease agreement, with the company responsible for managing the building on behalf of the leaseholders.
The ownership of the RMC is transferred to the leaseholders, making each leaseholder an equal shareholder. This structure allows leaseholders to collectively manage and make decisions about the maintenance, repairs and overall running of their building.
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