We are a small block and appointed new managing agents when we were not happy with the service provided with the previous ones.
On the date for handover, the old managing agent passed over the money and a few documents but they have refused to hand over most of the documents saying that they belong to them and not to us. We are investigating some problems with regard to some major works and we need all the files relating to the contracts with the supervising surveyor as well as the builders.
The old managing agents refuse to hand them over and we are increasingly concerned that the answers to what we need to investigate will be found on those files and might reflect badly on the old managing agents. Can you help us?
ANSWER The outgoing managing agents acted as your agents. The papers and documents belong to you, even if they were documents created by the managing agents. If the outgoing managing agents are members of RICS or ARMA, they are obliged to have a complaints handling procedure; ask for a copy of it and follow the steps through to a reference to the Ombudsman if necessary.
If the outgoing managing agents are not members of RICS or ARMA, then it is possible that they do not have a complaints handling procedure. I assume that the documents you are seeking are of substantial importance and that you have already written a carefully worded letter explaining why you need the documents and that, if necessary, you will instruct solicitors and seek costs. If not, do so and address the letter personally to the first named director on the letter heading or the senior partner of the firm. Ask for the letter to be acknowledged and ask for a reply within 14 days.
If that does not achieve success, you will have done everything you can without spending money and if you need to proceed further, it will be necessary to instruct a solicitor. Please make sure that you instruct one who is familiar with disputes and litigation; their knowledge and skills are very different from a conveyancing solicitor who acts in buying and selling property. A well-written letter from a solicitor will normally do the trick. If it doesn’t, then you are probably correct in suspecting that there are documents on the file (or missing from the file) which would not reflect favourably on the outgoing managing agent.
If you do have to start recovery proceedings in the Courts, please do not do so merely out of principle: be quite certain that the costs of recovery (in so far as those costs might not be recovered) need to be proportionate to the value of what you are trying to recover. Are you able to get the papers you need out of the builder or out of the supervising surveyor?
Sometimes it is more sensible and pragmatic to swallow hard, put it down as a bad experience which you do not wish to repeat, and move on. That really depends on the scale of the problem.
