Event Fees Code of Practice consultation

Friday 07 October 2016

In January this year we responded to the Law Commission consultation on event fees. This has helped shaped a proposed draft code of practice and now is your final opportunity to influence what elements will be carried forward to the final code of practice.

Event fees, also known as ‘transfer fees’, ‘contingency fees’ or deferred ‘management fees’ are the money some residential leases require the leaseholder to pay on the sale of the property or other event.

The fees are common in specialist housing for older people. For instance, when someone moves to retirement housing residents can make use of services provided for the accommodation. These can include use of the residents’ lounge, a gardener, or access to 24-hour care.

The introduction of a stringent code of practice will require developers, operators and managing agents to bring ‘event’ fees to the attention of prospective buyers. 

Transparency is key and the commission have proposed that every time a property is sold a disclosure document should be provided which should also contain a worked example based on the proposed purchase price of the property. 

Questions in the consultation cover the following areas:

  • enforcement
  • definitions
  • when fees can be charged
  • obligations
  • and how the impact should be assessed. 

>> FIND OUT MORE <<

>> DOWNLOAD CONSULTATION DOCUMENT (PDF) <<

RESPONDING

As we've been working very closely with the Law Commission on this, we'd prefer it if you could reply to our Policy and Campaigns Officer Tim Douglas by 24 October. This way we can represent your interests in the most effective way and put together a collective response for the most impact. 

Email: timdouglas@naea.co.uk

However, if you prefer, you can respond directly to the Law Commission. The deadline for responding directly is 31 October.  

The response form can be found on the project web page under the heading “Consultations and related documents”

Once complete, send your response to: event_fees@lawcommission.gsi.gov.uk