Dear Owner,
The Element Newhaven Owners Association – Annual General Meeting:
Wednesday 15th July 2015 – 7PM.
Following the AGM, I would like to confirm that the Committee’s proposal of changing Factor was voted in with 174 votes being cast and only 2 saying no to the proposal. Our Solicitor was on hand during the evening to clarify some legal points and confirm the process moving forward.
Further correspondence took place yesterday, Thursday, as City Factoring had responded to the Termination Letter sent to them stating that it does not recognise the termination of its contract, will continue to provide factoring services and will inform all the Owners of the Element that it will continue to provide its factoring services.
Further, it has alleged that the “Committee” are in breach of contract. In the circumstances, and following legal advice, we would suggest the following course of action:
- City Factoring Limited’s contract has been terminated and it is no longer to provide any factoring services to The Element
- The Element Factors Limited is the Factoring company (duly registered on the Register of Property Factors) who will be providing factoring services to The Element with immediate effect.
- The Element Factors Limited will not be charging any fee for its services for at least 12 months.
- All owners should immediately cease paying any money to City Factoring. All owners should now pay their Factors Fees including any arrears, and contribution to the Maintenance Fund, to the following accounts:
Factors Fees: (£100/month by monthly Standing Order):
The Element Factors Ltd
Sort code: 40 20 44
Account: 52170574
Maintenance Account:
TENOA
Sort Code: 83 24 18
Account: 10757176
Please make sure you include your name and property details on the reference with your payment.
- Maintenance Fund payments were invoiced in August 2013 at £480 per apartment. If you have not yet paid please do so. If you took ownership after August 2013, the new Factor will be contacting you soon to arrange invoicing and payment.
- All owners should be aware that City Factoring have stated that it does not recognise the termination of its contract with the Element Newhaven Owners’ Association (“Association”) and considers that the latter is in breach of contract, and that it will continue to provide factoring services.
- We have taken legal advice on behalf of the Association and have been advised that City Factoring’s position is weak. That is, it is unlikely to succeed in establishing that the Association have acted in breach of contract and incorrectly terminated the contract and that City Factoring is still entitled to provide factoring services.
- It is very likely that City Factoring will send correspondence to you stating that they remain the property manager/factor of The Element and that you must continue to pay all monies to it and not to any other factor or the Committee. Further, that failure to do so will lead to legal action being commenced against you.
- Please do not respond to this correspondence.
- Please send this correspondence immediately to the Committee Chairman [email protected]who will take appropriate legal advice on behalf of the Association, to protect your position.
- Please do not, under threat of their letter, pay money to City Factoring.
Further updates, including draft copies of the AGM Minutes, will be issued in regular updates.
Yours sincerely,
Alan Henderson,
Chairman.