The Freehold Management Enquiries (FME1) form has been created and endorsed by 14 industry, trade and representative bodies, including the Law Society.
The aim of the form is to have some standard questions that can be asked when acting for someone who is selling or buying a freehold that shares services with other houses.
The questions include asking for information about the amount of estate rent charges or service charge equivalent.
It is hoped that the use of these questions will ensure that prospective purchasers have full details of the costs they will need to pay, likely increases to these amounts, and those responsible for organising the maintenance arrangements for the shared areas/amenities.
The information required by the FME1 would come from the rent charge owner, the management company, the managing agent or their appointed representative.
The form should provide greater certainty around the provision of this information so that the sale and purchase can progress.
It is not mandatory to use FME1, but it is available for free to those who wish to use it.
The form’s format and questions cannot be altered. Regular reviews of the form’s contents will take place to ensure it remains current.
The Law Society has worked alongside the Home Owners Alliance, UK Finance, the British Property Federation, CILEx, the Royal Institute of Chartered Surveyors, the Conveyancing Association, the National Association of Estate Agents, the Society of Licensed Conveyancers, ARMA, ARLA, IRPM and others to produce these questions.