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Regulated by the RICS

1. Objective

To achieve the correct rental having regard for the evidence available for the parties without undue delay or expense and to ensure that the matter is conducted on the basis of a procedure in keeping with the scale of the dispute.

2. Dispute Procedure

  1. Where the rent on the property is to be reviewed and if the landlord and the tenant cannot agree on the new rent - there are procedures which are usually set out in the lease for the new rent to be determined by a third party - normally a qualified and experienced surveyor.
  2. If the parties to the lease cannot agree on the surveyor to carry out the determination, the lease will usually provide a procedure for one to be appointed.  This is often by an application to the Disputes Resolution Service of the Royal Institution of Chartered Surveyors (RICS) for the President to appoint a suitable person (a panel of possible appointees is maintained by the RICS).

3. Basis of Procedure

  1. The lease will usually set out the basis on which the surveyor should proceed and whether he should act as an arbitrator or an expert surveyor. 
  2. In either case it is usual for the landlord or tenant to be given the opportunity to make a statement to the arbitrator/surveyor on their views and opinions on the level of the new rent and to comment on the other party’s statement.
  3. If the matter is conducted by arbitration it is often the case that proceedings will be by written representation rather than a formal hearing, to reduce the costs.  Once the arbitrator’s decision on the rent is made it can only be challenged on limited legal grounds set out in The Arbitration Act 1996.  This Act governs the procedure under which an arbitration should be conducted.
  4. If the matter is conducted by an expert surveyor the proceedings are normally by written representation.  Once the level of the rent has been determined it cannot normally be challenged but in certain circumstances the surveyor can be sued for professional negligence.
  5. Once the arbitrator/surveyor has been appointed the basis on which the matter will precede will be agreed (or if there is no agreement, set out by the arbitrator/surveyor). These procedures must then be followed and the parties are bound by the rental determined subject to the comments above.

Please contact us on 01603 488023 (quoting 3. Rating. List 2010.  110503) if you are in need of advice or assistance on this topic