Part 5 - Regulation of Estate Management Section 74: Limitation of estate management charges: reasonableness
Section 74 mirrors Section 19 of the 1985 Act in relation to leasehold service charges. Subsection (1) states that costs incurred by estate managers are relevant costs only to the extent they are reasonably incurred, and they are incurred in the provision of services or carrying out works, only if the services or works are of a reasonable standard. Subsection (2) explains that where an estate management charge is payable before relevant costs are incurred, then no greater amount than is reasonable is so payable and, after costs have been incurred, a necessary adjustment must be made to the charge (by repayment, reduction of service charges or otherwise).