FID Trust International

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COMMONHOLD COMMUNITY STATEMENT

[NAME] COMMONHOLD ASSOCIATION LIMITED


This Commonhold Community Statement (referred to as "this Statement") is to be read together with the memorandum and articles of association of the company referred to above (referred to in this Statement as the "Memorandum", the "Articles" and the "Commonhold Association" respectively). In the event of any conflict between the provisions of this Statement and the Memorandum and Articles, the provisions of the memorandum and articles shall prevail.

Capitalised terms have the same meaning as in Part I of the Commonhold and Leasehold Reform Act 2002 (referred to in this Statement as "the Act").

Wherever permitted or required by regulations made under section 13(6) of the Act, references in this Statement to Unit-holders include joint Unit-holders.

This Statement may only be amended in accordance with sections 23, 24, 30 and 33 of the Act and regulations made thereunder (as applicable).

The Statement must be signed by or on behalf of the applicant for registration.

FURTHER INFORMATION ABOUT THE COMMONHOLD [ENTER NAME OF COMMONHOLD] MAY BE FOUND IN THE MEMORANDUM AND ARTICLES OF ASSOCIATION OF THE [ ] COMMONHOLD ASSOCIATION AND BY LOOKING AT THE RELEVANT REGISTERS KEPT BY HM LAND REGISTRY.

PART I: THE COMMONHOLD LAND, THE COMMONHOLD ASSOCIATION AND THE APPLICANT FOR REGISTRATION

The Land

1. Address(es) of the Commonhold:

The Commonhold Association

1. Name of the company:

2. Registered number of the company at the Companies Registry:

3. Date of incorporation:

4. Registered office:

The Applicant for Registration (the Developer)

5. Name:

6. Address:

7. Company registration number:

PART II: THE COMMONHOLD

In the event of any inconsistency between any of the descriptions given below and the plan or plans of the Commonhold attached hereto, the plans will prevail.

The Commonhold

1. Description of the type of Commonhold (residential only, commercial only, or mixed use):

The Commonhold Units

2. The total number of Commonhold Units in the Commonhold:

3. Identification of the Commonhold Units (in words) by reference to the plans attached hereto, including in each case:

  1. a description and the distinctive address(es) of the unit;
  2. a description of any excluded structures, fittings, apparatus or appurtenances;
  3. whether the unit is a residential unit as provided for in Section C of the Rules in Part IV below:
  4. the relevant percentage or percentages allocated to the unit for the purposes of the payment of the Commonhold Assessment and any levies under sections 38 and 39 of the Act.

Limited Use Areas [Optional]

1. Identification of the Limited Use Areas, if any, including in the case of each area:

  1. a description of the area; and
  2. a statement of the classes of person who may use it and the kind of use to which the area may be put.

The Plans

4. A plan or plans of the Commonhold showing each Commonhold Unit, the Common Parts and any Limited Use Areas is/are attached to this Statement.

PART III: DEVELOPMENT RIGHTS

This Part of the Statement is subject to section 58 of the Act and regulations made thereunder.

If no development rights of the types mentioned below are to be conferred on the Developer, the relevant paragraph should be deleted.

The Developer's rights to carry out Development Business on the Commonhold

1. The Developer has the right to add the following land to the Commonhold:

2. The right conferred by 1. above will expire on: [date]

3. The Developer has the right to remove the following land from the Commonhold:

4. The right conferred by 3. above will expire on: [date]

5. The Developer has the right to redefine the Commonhold Units in the following respects:

6. The right conferred by 5. above will expire on: [date]

7. The Developer has the right to complete the following works on the Commonhold and on any added or removed land:

8. The works specified in 7. above will be completed by: [date]

The extent and effect of the Development Business [Optional]

9. A plan or plans of the Commonhold showing the effect and extent of the Development Business is/are attached to this Statement.

The Developer's rights to market the Commonhold Units [Optional]

10. The Developer has the right to carry out the following transactions in Commonhold Units which he owns:

11. The Developer has the right to conduct the following advertising and other activities designed to promote transactions in the Commonhold Units:

The Developer's rights to appoint and remove directors of the Commonhold Association [Optional]

12. The Developer has the right to appoint and remove directors in accordance with the articles of association of the Commonhold Association.

PART IV: THE RULES OF THE COMMONHOLD ASSOCIATION

References to the "Rules" are to these rules of the Commonhold Association.

Rules or parts of Rules shown in italics are optional and are provided by way of illustration only.

INDEX TO THE RULES

Section

A: General Rules 1-4
B: Dealings with Commonhold Units and the Common Parts Rules 5-12
C: Use of the Commonhold Rules 13-18
D: Insurance, repair and maintenance Rules 19-26
E: The Commonhold Assessment and other financial matters Rules 27-33
F: Complaints, default procedures and enforcement Rules 34-48
G: Meetings, access to documents and committees Rules 49-52
H: Miscellaneous Rules Rules 53-66

SECTION A: GENERAL

Effect of the Memorandum and Articles and the Rules

1. The Memorandum and Articles shall be binding on the members of the Commonhold Association and upon the Commonhold Association in accordance with the provisions thereof and of section 14 of the Companies Act 1985.

2. These Rules shall be binding on the Commonhold Association and upon all Unit-holders holding Commonhold Units in the Commonhold ("Unit-holders"). The Commonhold Association and all Unit-holders undertake to do, or to refrain from doing, all such things as are necessary to give effect to these Rules.

Amendment of the Rules

3. These Rules may only be amended in accordance with sections 23, 24, 30 and 33 of the Act and regulations made thereunder (as applicable).

Non-discrimination

4. Subject to any applicable law, and except as specifically permitted or required by these Rules, the Commonhold Association shall not discriminate in its application of these Rules or in its treatment of any Unit-holder on the grounds of sex, race or physical or mental capacity.

SECTION B: DEALINGS WITH COMMONHOLD UNITS AND THE COMMON PARTS

Transfer of Commonhold Units

5. The Commonhold Association shall not prevent or restrict the transfer of a Commonhold Unit.

6. On transfer of a Commonhold Unit the new Unit-holder shall notify the Commonhold Association of the transfer in the form and manner, and within the time prescribed by regulations made under section 15(4) of the Act.

7. Subject to and in accordance with section 16 of the Act, upon transfer of a Commonhold Unit, the new Unit-holder shall become subject to the Rules.

Leases of Commonhold Units

8. A Unit-holder of a Commonhold Unit designated as a residential unit in Part II above may only create a term of years absolute in his Commonhold Unit in accordance with such regulations as may be prescribed from time to time under sections 17 and 19 of the Act.

9. A Unit-holder of a Commonhold Unit which is not designated as a residential unit in Part II above may only create a term of years absolute in his Commonhold Unit in accordance with such regulations as may be prescribed from time to time under section 19 of the Act.

10. To the extent provided by the Act and by such regulations, and with such minor modifications as the context requires, references in this Statement to a "Unit-holder" shall be construed as applying also to a tenant of a Commonhold Unit.

Other transactions relating to Commonhold Units

11. Subject to Rules 8 and 9 above, a Unit-holder may only create, grant or transfer an interest in the whole or part of his Commonhold Unit, or create a charge over his Commonhold Unit in accordance with sections 20, 21 and 22 of the Act and such regulations as may be prescribed from time to time under sections 20 and 21.

12. To the extent provided by the Act and by such regulations and with such minor modifications as the context requires, references in this Statement to a "Unit-holder" shall be construed as applying also to the holder of such interest or charge in a Commonhold Unit.

Licences etc. of Commonhold Units

13. A Unit-holder may only create or grant any licence or other right over, or part with possession of, his Commonhold Unit or any part thereof, with the prior written consent of the board of directors of the Commonhold Association (the "Board of Directors") and subject to such terms and conditions as the Board of Directors may specify.

14. To the extent provided by such terms and conditions and with such minor modifications as the context requires, references in this Statement to a "Unit-holder" shall be construed as applying also to a licensee, grantee or occupier of a Commonhold Unit.

Mortgages of the Common Parts

15. Save that the Commonhold Association may create a legal mortgage over the Common Parts in accordance with section 29 of the Act, the Commonhold Association may not create a charge over the Common Parts.

SECTION C: USE OF THE COMMONHOLD

Use of residential units

16. The Commonhold Units designated as residential units in Part II above ("residential units") shall be used only for residential purposes, or for residential purposes and other incidental purposes.

17. A garage included in a residential unit shall only be used as a private garage. 18. A parking space included in a residential unit shall only be used for parking vehicles and shall be for the exclusive use of the Unit-holder of that unit and his invitees.

General restriction on the use of Commonhold Units

19. No Commonhold Unit may be used for any illegal or immoral purpose.

Use of Common Parts

20. Subject to any applicable Rules, the Common Parts may be used by all Unit-holders (including any Unit-holder who has created or granted a lease, licence or other right in or over their Commonhold Unit or parted with possession of the same in accordance with these Rules) and their invitees.

Limited Use Areas

21. The areas of the Common Parts which are specified as Limited Use Areas in Part II of this Statement may only be used by the classes of persons set out therein and for the kind of use specified therein.

SECTION D: INSURANCE, REPAIR AND MAINTENANCE

Insurance

22. Every Unit-holder shall take out and maintain buildings and contents insurance, including public liability insurance, in respect of his Commonhold Unit in a form satisfactory to the Board of Directors. Any buildings insurance which is in a form satisfactory to the mortgagee of a Commonhold Unit shall be deemed to be in a form satisfactory to the Board of Directors.

OR

Every Unit-holder shall take out and maintain contents insurance, including public liability insurance, in respect of his Commonhold Unit in a form satisfactory to the Board of Directors. The Commonhold Association shall take out and maintain buildings insurance, including public liability insurance, in respect of the Commonhold Units.

23. If default is made by any Unit-holder in effecting the insurance required by these Rules, the Commonhold Association shall be entitled to arrange and effect such insurance as the Board of Directors shall consider appropriate in respect of the Commonhold Unit.

24. The Commonhold Association shall take out and maintain appropriate insurance, including public liability insurance, in respect of the Common Parts.

Repair and Maintenance of the Commonhold Units

25. Each Unit-holder shall be responsible for the repair and maintenance of the interior of his Commonhold Unit. The Commonhold Association shall be responsible for the repair and maintenance of the exterior of the Commonhold Units.

26. If default is made by any Unit-holder in repairing or maintaining his Commonhold Unit as required by these Rules, the Commonhold Association shall be entitled to effect such repairs or maintenance as the Board of Directors shall consider appropriate in respect of the Commonhold Unit and for that purpose shall be entitled to use and enforce rights of access to the Commonhold Unit in accordance with Rule 46 below.

Alterations

27. Any alterations to the structure or external appearance of a Commonhold Unit may only be made with the written consent of the Board of Directors, and subject to the provisions of sections 23 and 24 of the Act (if applicable).

Prohibited works

28. No Unit-holder shall do or cause to be done any of the following works in or upon his Commonhold Unit, namely [specify]:

Repair and Maintenance of the Common Parts

29. The Commonhold Association shall be responsible for the repair and maintenance of the Common Parts in accordance with such specifications and standards as may be set by the Board of Directors and published to Unit-holders from time to time.

SECTION E: THE COMMONHOLD ASSESSMENT AND OTHER FINANCIAL MATTERS

Commonhold Assessment

30. At least once a year, and at any other time as they may think necessary or appropriate, the Board of Directors shall prepare an estimate of the income required by the Commonhold Association to meet its expenses (including the remuneration, if any, of the directors). The amount so determined shall be allocated among the Commonhold Units in accordance with the relevant percentages for the units as set out in Part II above.

Reserve study

31. At least every ten years, and at any other time as they may think necessary or appropriate, the Board of Directors shall prepare, on the basis of an inspection and with the assistance of such surveyors, engineers or other professional advisers as may be appropriate, a written study listing all of the major assets, equipment, fixtures or fittings which the Commonhold Association owns or maintains with a remaining life of less than [number] years (a "reserve study"). The reserve study must estimate in the case of each such item, (i) the remaining life of the item, (ii) the costs of maintaining and replacing the item, and (iii) the annual contribution required to maintain such costs.

Reserve funds and levies

32. The Board of Directors may from time to time, and having regard to any relevant reserve study, resolve to establish and maintain reserve funds in accordance with, and for the purposes specified in, section 39 of the Act.

33. For the purpose of obtaining the necessary monies for such reserve funds, the Board of Directors may from time to time set levies which shall be allocated among the Commonhold Units in accordance with the relevant percentages for the units as set out in Part II above.

Notices and payment of commonhold assessment and levies

34. Within 28 days after any amounts have been determined and allocated among Commonhold Units as aforesaid, the Board of Directors shall serve notices on each Unit-holder specifying the payment required to be made by him. The notice shall specify the date upon which payment is due and may, if the Board of Directors think fit, give the Unit-holder the option of paying the specified sum in instalments in such amounts and on such dates as shall be specified. Except where earlier payment by Unit-holders is necessary to enable the Commonhold Association to pay its debts as and when they fall due, the notice shall not specify a date for payment of any sum which is less than 28 days after service of the notice.

35. Upon receipt of any such notice, the Unit-holders shall pay the amount(s) specified therein by the date(s) specified therein.

Annual report and budget

36. In addition to, and at the same time as circulating or laying before the members of the Commonhold Association in general meeting its annual accounts and its directors' report as required by the Companies Act 1985, the Board of Directors shall also circulate or lay before the members a written report comparing the results of the Commonhold Association against its estimated budget for the year and setting out an estimated budget for the forthcoming year.

SECTION F: COMPLAINTS PROCEDURE, DEFAULT PROCEDURES AND ENFORCEMENT

37. Subject to section 35 of the Act, in the event of any breach (including any alleged, suspected or threatened breach) of the Articles or these Rules, Rule 40 below sets out a procedure to be followed by Unit-holders (the "Complaints Procedure") and Rules 41-45 below set out a procedure to be followed by the Commonhold Association (the "Default Procedure").

38. Subject to Rule 39 below,

(a) the Complaints Procedure must be followed prior to the Unit-holder

  1. taking any legal proceedings against another Unit-holder or the Commonhold Association, or
  2. referring any matter to an ombudsman appointed pursuant to section 42 of the Act (an "Ombudsman"); and

(b) the Default Procedure must be followed prior to the Commonhold Association

  1. exercising any of the rights given under Rules 23 or 26 above,
  2. serving any indemnity notice under Rule 49 below,
  3. taking any legal proceedings against a Unit-holder, or (iv) referring any matter to an Ombudsman.

39. A Unit-holder shall be entitled to depart from the Complaints Procedure in whole or in part, and the Commonhold Association shall be entitled to depart from the Default Procedure in whole or in part, in any case in which the urgency of the matter or other special circumstances make it unreasonable for the Complaints Procedure or the Default Procedure to be implemented in accordance with their terms.

Complaints Procedure

40. Any Unit-holder having grounds for complaint in relation to any breach (including any alleged, suspected or threatened breach) of the Articles or the Rules and being unable to achieve a resolution of his complaint by agreement with the other party or parties concerned, shall notify the Board of Directors of his complaint in writing and provide them with all necessary information as they may reasonably require to enable them to take appropriate steps in an effort to resolve the matter in accordance with their duties under section 35 of the Act and under the Default Procedure.

Default Procedure

41. If the Board of Directors have reason to believe that any person (the "alleged defaulter") has breached, is breaching, or may breach any of the Articles or these Rules, they shall first attempt to resolve the matter by informal means.

42. If the Board of Directors are unable to resolve the matter by informal means, they shall serve upon the alleged defaulter a notice in writing (a "default notice") before taking any other action in respect thereof.

43. The default notice shall specify the alleged breach or anticipated breach of the Articles or these Rules in sufficient detail to enable the alleged defaulter to understand how it is contended that the Articles or Rules have been, are being or might be breached.

44. The default notice shall specify a reasonable period within which the alleged defaulter

  1. must cease and/or remedy the breach, or
  2. give assurances satisfactory to the Board of Directors that a breach will not occur, or
  3. show that there is no breach or anticipated breach as specified in the default notice.

45. The default notice shall contain a prominent warning that in the event that the alleged defaulter does not comply with the default notice within the required period, the Commonhold Association may take action without any further notice to him, including exercising its rights under Rules 23 or 26, serving an indemnity notice under Rule 49, referring the dispute to an Ombudsman, or taking legal proceedings, and that any such action may result in orders being made against the alleged defaulter for compensation, costs and interest.

Rights of Access to Commonhold Units

46. In addition to any other rights of access which may exist or be enforceable at law, every Unit-holder hereby grants to the Commonhold Association, acting by its officers or other duly appointed agents for the purpose,

  1. the right to enter upon his Commonhold Unit in the event of emergency or risk of harm, whether by fire, flood, escape of noxious substances, electricity or otherwise, to the Commonhold or to the health or well-being of any person upon the Commonhold or in adjoining premises; and
  2. the right to enter upon his Commonhold Unit to carry out any repairs or maintenance in accordance with Rule 26 above, provided that such right of access shall only be enforceable with the consent of the Unit-holder, or pursuant to the order of a court of competent jurisdiction.

Enforcement of Rules relating to the parking of vehicles

47. Without prejudice to its other rights to ensure compliance with the Rules, the Commonhold Association may take such lawful steps as are necessary to enforce any Rules relating to the parking of vehicles on any part of the Commonhold, including arranging for the immobilisation or removal of vehicles parked in contravention of the Rules.

Indemnity

48. Without prejudice to any other remedy to which the Commonhold Association or any other Unit-holder may be entitled, any Unit-holder who is in breach of any provision of the Articles or the Rules or any statutory requirement (the "defaulter") shall indemnify and hold harmless the Commonhold Association and any other Unit-holder against any costs arising from such breach, including, if appropriate, the costs of remedying the breach or of acting in the stead of the defaulter as permitted by the Rules.

49. If the Board of Directors are of the opinion that the Commonhold Association or any Unit-holder has incurred any costs arising from such breach as aforesaid which the defaulter ought to pay, they shall serve a notice (an "indemnity notice") on the defaulter requiring him to pay the amount of such costs to the Commonhold Association or to the other Unit-holder within a specified period being not less than 14 days.

50. Upon receipt of such notice, the defaulter shall have 14 days within which to pay the amount specified in the notice, or serve a notice upon the Commonhold Association disputing his liability to pay and/or the amount specified in the notice. If any such dispute cannot be resolved by agreement within 28 days, either the Commonhold Association or the defaulter may refer the dispute to an Ombudsman.

51. Subject to any judgement or award by a court of competent jurisdiction or by an Ombudsman to the contrary, interest shall be payable upon any amounts due or found to be due and not paid by the date specified in the indemnity notice at the rate specified for the time being in regulations made under section 37 of the Act.

SECTION G: MEETINGS, ACCESS TO DOCUMENTS AND COMMITTEES

Meetings of the Commonhold Association

52. All meetings of the Commonhold Association shall be held on the Commonhold or at such other suitable place as is nearby and reasonably accessible to all members.

Maintenance and inspection of books and records etc

53. The Commonhold Association must retain and make available for inspection at its registered office a copy of the original and any amended versions of the Commonhold Community Statement, together with a list of the date(s) upon which such documents were registered.

54. All Unit-holders shall be entitled to and shall be given the same rights of access to, and inspection of the books, documents and accounting records of the Commonhold Association as members of the Commonhold Association.

Committees

55. The Commonhold Association shall have the following committees established pursuant to the Articles and for the purposes specified below, together with such other functions and subject to such other powers and restrictions as may be placed upon them from time to time by the Board of Directors. Such committees shall report to, and be subject at all times to control and supervision by, the Board of Directors. The members of such committees shall be elected by the members of the Commonhold Association at the annual general meeting in each year to serve until the conclusion of the next annual general meeting. The committees are:

  1. the executive committee, consisting of [number] members, and having [specify functions];
  2. the finance committee, consisting of [number] members, and having [specify functions];
  3. the buildings committee, consisting of [number] members, and having [specify functions];
  4. the residents' committee, consisting of [number] members who shall be Unit-holders of residential units in the Commonhold and having [specify functions];
  5. the commercial committee, consisting of [number] members who shall be Unit-holders of non-residential units in the Commonhold, and having [specify functions].]

SECTION H: MISCELLANEOUS RULES

Access

56. No Unit-holder or his invitees shall do any thing or leave or permit to be left any goods, rubbish or other object which obstructs or hinders lawful access to any part of the Commonhold.

Aerials and satellite dishes

57. No Unit-holder or his invitees shall erect or permit to project outside his Commonhold Unit or into the Common Parts any radio or television aerial or satellite dish.

Behaviour

58. A Unit-holder must not, and must take reasonable steps to ensure that his invitees do not, behave in any way or create any sound or noise which causes or is likely to cause any annoyance, nuisance, injury or disturbance to other Unit-holders, or to any other person lawfully on the Commonhold, or to the occupiers of adjoining buildings or premises.

Cleaning of Common Parts, exterior and windows

59. The Commonhold Association shall be responsible for the regular cleaning of the Common Parts and the exterior of the Commonhold, including windows.

Cleaning of Commonhold Units

60. Each Unit-holder shall be responsible for the regular cleaning of his Commonhold Unit, including the exterior and windows thereof.

Drainage and water pipes

61. Every Unit-holder shall take adequate steps to prevent the leakage of pipes or escape of water from his Commonhold Unit, including lagging all pipes and tanks against freezing.

Hanging of clothes

62. Save in the areas specifically made available for the same by the Commonhold Association, no Unit-holder or his invitees may hang or expose any clothes or other articles outside his Commonhold Unit or in the Common Parts.

Hazardous materials

63. A Unit-holder or his invitees may not, without the written consent of the Board of Directors, bring onto the Commonhold or store in any part thereof, any flammable, hazardous or noxious substance. This does not apply to the storage of fuel in the fuel tank of a vehicle or in a small reserve tank for use in connection with the vehicle.

Mechanical, scientific or electrical items

64. Except with the written consent of the Board of Directors, no Unit-holder of a residential unit or his invitees shall have or install in his Commonhold Unit any mechanical, scientific or electrical apparatus other than ordinary domestic appliances.

Notices

65. Any notice to be given to or by any person pursuant to these Rules shall be in writing. The Commonhold Association may give any notice to a Unit-holder either personally or by sending it by first class post in a prepaid envelope addressed to the Unit-holder at his Commonhold Unit or by leaving it at that address. Proof that an envelope containing a notice was properly addressed, prepaid and posted by first class post shall be conclusive evidence that the notice was given. A notice sent by first class post shall be deemed to be given at the expiration of 48 hours after the envelope containing it was posted.

Pets

66. No animals may be kept or brought onto the Commonhold without the written consent of the Board of Directors.

Signs

67. No Unit-holder or his invitees shall post or permit to be posted any notice or sign in the Common Parts, except upon any notice-board or other facility provided for the same by the Commonhold Association.

Smoke detectors

68. Each Unit-holder shall install in his Commonhold Unit and maintain in working order a smoke detector or smoke detection system of a type specified by the Board of Directors and complying with any applicable health and safety or building regulations.

69. The Commonhold Association shall install in the Common Parts and maintain in working order a smoke detector or smoke detection system of a type complying with any applicable health and safety or building regulations.

Window boxes

70. No flower pot or other like object shall be placed outside the Commonhold Units or in the Common Parts except where provided by or with the written consent of the Commonhold Association.

PART V: ADDITIONAL INFORMATION

This section should include any additional information concerning the Commonhold.

Any special or unusual features or facilities which are to be found in or provided as part of the Commonhold, the Commonhold Units or the Common Parts may be mentioned here.

PART VI: EXECUTION AND AMENDMENT OF THIS STATEMENT

This Statement is signed by or on behalf of the Applicant for Registration by

Name
Address

Name

Address

on ________________________ 2________

This Statement has been amended as set out below.

Amendment number Date of resolution amending the Statement
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2  
3  
4  
5