BreeUp templates

Owner and Landlord Service Charge Agreement

Put service charges on a written footing. One agreement for the association and each owner or landlord to sign, with a fixed term, open accounts, lawful steps for arrears and clear ways out.

[Estate name]: Owner and Landlord Service Charge Agreement

This agreement is made on [date] between The Registered Trustees of [Estate name] Residents' Association ("the Association") and [owner's full name] of [owner's address] ("the Owner"), in respect of [house, plot or flat number] within [Estate name], [address of the estate] ("the Property").

1. Background
1.1 The Association looks after the shared services and common areas of [Estate name] for the benefit of everyone who owns or lives in a property there.
1.2 The Owner benefits from those services and wants to take part in them on clear, written terms.
1.3 The parties agree to the terms below so that service charges are paid fairly, spent openly and recovered lawfully.

2. Meanings
2.1 "Shared Services" means the services listed in Schedule 2, such as gate security, street lighting, refuse collection, drainage and road repairs, and any others approved at a general meeting.
2.2 "Service Charge" means the Owner's share of the cost of the Shared Services, worked out as set out in Schedule 3.
2.3 "Special Levy" means a one-off charge for a project approved at a general meeting under the By-laws, such as a transformer replacement.
2.4 "By-laws" means the rules of the Association as approved at a general meeting and amended from time to time.
2.5 "Occupier" means anyone living in or using the Property, including a tenant, their household, staff and guests.
2.6 "Estate Account" means the bank account in the Association's name named in Schedule 3, or any account the Association later gives written notice of.

3. How long this agreement lasts

15 sections

Get the full Owner and Landlord Service Charge Agreement

A fixed term that renews automatically
What the owner and the association each promise, including open accounts and receipts
Lawful steps for arrears, with no lockouts or cut-offs
Exit clauses: sale, serious failure by either side, agreement, change of manager
Schedules for the property, services and charges, plus a deed of adherence for a new owner
Fill in your estate's details, then copy, download for Word or print

One-off payment. Your access code comes by email.

Questions

Why do owners need to sign anything?

In Megawatts Nigeria Ltd v Registered Trustees of Gbagada Phase II Residents' Association (2020), the Federal High Court held that nobody can be forced to join a residents' association. Membership alone is a weak basis for compulsory dues. A signed agreement gives the estate a written promise to pay.

Does it let us lock defaulters out?

No. It sets out lawful steps for arrears, from reminders and payment plans to mediation and a claim in court, and it says the association won't block access to a home or cut off essential services. Those tactics can land an estate in legal trouble.

What happens when an owner sells?

The owner settles what they owe, the association issues a clearance letter, and the new owner signs the one-page deed of adherence included in the template.

Is this legal advice?

No. It's a starting point written in plain English. Laws differ by state, so have a lawyer review it, and ask about stamping, before anyone signs.

Landlords with tenants also need the tenant service charge clause, and the agreement works best alongside your estate by-laws. For why this matters, read our guide to getting residents to pay.

Run the service charge on BreeUp

Bills for every household, receipts for every payment and accounts residents can see, so the agreement is easy to keep.

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