How does a retention fund work?
One of the solicitors retains a sum from the sale proceeds pending the result of a radon test by the new occupier. If this result is below the Action Level, the money is returned to the vendor, normally within six months. If this test result exceeds the Action Level, the money is used to pay for mitigation work. Once this work has been completed and shown to be effective by a further test, up to a further nine months after the first test result, any surplus is returned to the vendor. For most properties a sum of around £1000 is adequate for normal mitigation work and HPA advises that the most effective method of mitigation should always be used.
