With the introduction on 26 March 2021 of the Community Land Development Act 2021 and its associated regulations (‘the Regulations’) came a raft of changes that affect Neighbourhood, Precinct and Community Associations. In particular, it is now a requirement for an association, when lodging a change of management statement with the Land Registry Service, to provide this change in the form of a consolidated management statement.
So what is a management statement, and what does it mean for it to be in consolidated form?
A management statement is a document which includes by-laws regulating the management, administration and control of an association scheme and relating to the control or preservation of a theme of the development. A management statement is binding on the association and each person who is an owner, lessee or occupier of a lot within a scheme and as such is an important document for all involved with an association scheme, including prospective purchasers.
An association may wish to change its by-laws at certain times for various reasons – for instance, to allow for improvements to association property for the installation of solar panels or EV charging. To register and make effective such a by-law change requires a change of management statement. Previously, a change to a scheme’s management statement could be registered by providing only the new addition or amendment – however, this is no longer the case. The Regulations clause 28(1) now provides that ‘An amendment to a management statement must be lodged with the Registrar-General in the form of a consolidated version of the management statement that incorporates the amendment.’ This now requires a management statement to concisely record, in a single and readily accessible instrument all of the by-laws that affect the scheme.
Currently, many association schemes may have numerous changes to their management statement in annexed form and will require these changes to be consolidated into the one document prior to the registration of any new changes.
This is general information and should not be considered legal advice. You should obtain legal advice specific to your individual situation.
Authors: James Webster