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A Shared Facilities Agreement sets out how multiple parties share and maintain common areas or equipment in a property. You'll often see these in office buildings, business parks, or mixed-use developments where tenants need to coordinate their use of shared spaces like lobbies, car parks, or utilities.

These agreements spell out each party's rights, responsibilities, and cost-sharing arrangements for maintaining shared facilities. They typically include details about cleaning schedules, security arrangements, insurance requirements, and how service charges are calculated and collected - all crucial elements under English property law for preventing disputes and ensuring smooth day-to-day operations.

You need a Shared Facilities Agreement when multiple occupants share common areas or services in a property. This is especially crucial for multi-tenant office buildings, retail complexes, or industrial estates where several businesses use the same lobbies, lifts, loading bays, or parking facilities.

Put this agreement in place before occupants move in or when ownership changes hands. It prevents disputes by clearly defining maintenance responsibilities, cost allocation, and usage rights. Many property managers find these agreements essential when coordinating service charges, scheduling repairs, or managing shared utilities - particularly in developments where facility costs significantly impact operating expenses.

• Basic service charge agreements: Cover standard shared amenities like reception areas, lifts, and utilities in commercial buildings
• Complex multi-party agreements: Used for large developments with multiple buildings and varied facilities like parking, security, and landscaping
• Residential estate agreements: Tailored for housing developments sharing communal gardens, access roads, or recreational facilities
• Mixed-use facility agreements: Coordinate shared spaces between retail, office, and residential occupants
• Special purpose agreements: Designed for unique facilities like shared conference centres, loading bays, or specialised equipment

• Property Owners: Set up and enforce the agreement, usually through their managing agents, and maintain overall control of shared facilities
• Commercial Tenants: Follow the agreement's terms and contribute to service charges for shared areas they use in the building
• Property Management Companies: Handle day-to-day operations, maintenance scheduling, and service charge collection
• Facilities Managers: Implement the practical aspects of the agreement, coordinating maintenance and repairs
• Commercial Property Solicitors: Draft and review agreements to ensure compliance with property law and protect clients' interests

• Property Details: List all shared areas, facilities, and equipment that need managing, including their location and condition
• Service Charges: Calculate anticipated maintenance costs and determine how these will be divided among occupants
• Usage Rights: Document each party's access times and permitted uses for shared facilities
• Maintenance Schedule: Plan regular upkeep, cleaning, and repairs for shared areas
• Insurance Requirements: Specify coverage needed for shared facilities and who's responsible for maintaining policies
• Decision-Making Process: Establish how changes to facilities or costs will be agreed upon between parties

• Parties and Property: Full legal names of all parties and detailed description of shared facilities and property
• Rights and Access: Clear terms covering usage rights, access times, and restrictions for shared areas
• Service Charges: Detailed breakdown of costs, calculation methods, and payment schedules
• Maintenance Obligations: Specific responsibilities for repairs, cleaning, and general upkeep
• Insurance Requirements: Coverage types, minimum amounts, and party responsibilities
• Dispute Resolution: Process for handling disagreements and enforcement mechanisms
• Term and Termination: Agreement duration, renewal options, and exit provisions

A Shared Facilities Agreement differs significantly from a Facilities Management Agreement in several key aspects. While both deal with property management, their scope and purpose are distinct.

• Primary Focus: Shared Facilities Agreements govern relationships between multiple occupants sharing common areas, while Facilities Management Agreements outline how a single provider maintains an entire property
• Party Structure: Shared Facilities involve multiple tenants or owners as equal parties, whereas Facilities Management creates a service provider relationship with one managing entity
• Cost Allocation: Shared Facilities divide costs between users based on usage or space, while Facilities Management typically involves fixed service fees paid to the management company
• Decision Making: Shared Facilities require consensus among users for major changes, but Facilities Management gives the provider operational control within agreed parameters