Legal Protections and Obligations

1. Leaseholder Protections: The Building Safety Act 2022 offers legal protections for leaseholders against historical building safety costs, covering all costs related to unsafe cladding systems and providing robust protections against non-cladding remediation costs.
2. Building Owners’ Obligations: Building owners are expected to meet their legal obligations for remediation costs. The Act includes anti-avoidance and enforcement provisions to ensure compliance, such as remediation and contribution orders.
3. Enforcement Provisions: Relevant authorities can compel responsible entities to fund and undertake necessary remediation work. The Recovery Strategy Unit will pursue firms that repeatedly refuse to pay for remediation.

Remediation Orders

4. Application Process: Interested persons can apply to the Property Chamber of the First-tier Tribunal for a remediation order requiring a building owner to fix specified defects. Interested persons include:
   • Building Safety Regulator
   • Local authority
   • Fire and rescue authority
   • Secretary of State
   • Persons with a legal or equitable interest in the building (e.g., leaseholders, freeholders)
5. Enforcement: If a building owner fails to comply with a remediation order, it is enforceable by the county court.
6. Step-by-Step Process:
   • An interested person applies to the Tribunal.
   • The Tribunal issues a remediation order specifying the timeframe for defect remediation.
   • Non-compliance can result in contempt of court, punishable by fines or imprisonment.

Remediation Contribution Orders

7. Purpose: These orders allow interested persons to require companies to make payments for remediation costs. Interested persons include those who can apply for remediation orders and special measures managers for buildings over 18 meters.
8. Applicable Parties:
   • Building owners
   • Landlords (as of 14 February 2022)
   • Developers
   • Associated persons
9. Cost Recovery: The orders enable cost recovery for leaseholders from building owners, developers, and associated parties. Right to Manage and Resident Management Companies can recover legal and professional service costs incurred in applying for these orders.
10. Step-by-Step Process:
    • Apply to the Property Chamber of the First-tier Tribunal.
    • The Tribunal can order responsible parties to make payments for remediation costs.
    • Non-compliance can result in contempt of court, with penalties including fines or imprisonment.

Leaseholder Rights and Actions

11. Remediation Orders: Leaseholders can apply for a remediation order if their building has historical safety defects that have not been remedied within a specified timeframe.
12. Remediation Contribution Orders: Leaseholders can recover costs paid towards remediation before leaseholder protections were enacted. They can also seek contributions from associated persons if the responsible company is unable to pay.
13. Costs: Leaseholders may incur costs, including a £100 application fee to the Tribunal. Management companies may require leaseholders to contribute to litigation costs via service charges.

Examples

• Example 1: A building with historical defects remains unrepaired. The fire and rescue authority applies for a remediation order, and the Tribunal mandates the building owner to fix the defects within a specified period.
• Example 2: Leaseholders previously paid for cladding removal. They can now apply for a remediation contribution order to recover these costs from the developer and building owner, with the Tribunal specifying repayment terms.

For more detailed guidance, leaseholders and interested parties are encouraged to refer to the detailed guidance published by the Department for Levelling Up, Housing and Communities and visit the redress factsheet for further information on their rights and processes.