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Problems with development and developers still in control

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  • 18-11-2009 9:19am
    #1
    uberwolf
    Registered Users Posts: 7,580 ✭✭✭


    Not sure how to deal with this, or what the salient points are.

    a few issues. AGM last week, we had to reelect the developers solicitors as directors as the developers still own units on site (3 years after completion)
    I presume???? this means the development has still not been vested in the management company
    There are a number of problems with the development which are a consequence of suboptimum work by the developers. All of these jobs would have been certified by the approp professional at the time, and now we have reports saying that the jobs are well below required level.

    Developer is washing his hands of these issues, and has managed to sell a few units in the complex in the last few months, and fobbed off these issues as problems for the management company.

    Developer, like many, has applied for change of use and conversion of a retail unit in the site into an apartment. This may represent an opportunity for the residents committee to leverage the required works be done, if we do it properly - so what should we do?


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    #2
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,215 Mod ✭✭✭✭godtabh


    You can get rid of the developers as directors. Check the details of your management company on how to elect directors. Its easy to do. I've recently done it


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    #3
    mrgaa1
    Closed Accounts Posts: 759 ✭✭✭mrgaa1


    what are the issues?


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    #4
    Paulw
    Registered Users Posts: 13,381 ✭✭✭✭Paulw


    uberwolf wrote: »
    There are a number of problems with the development which are a consequence of suboptimum work by the developers. All of these jobs would have been certified by the approp professional at the time, and now we have reports saying that the jobs are well below required level.

    Developer, like many, has applied for change of use and conversion of a retail unit in the site into an apartment. This may represent an opportunity for the residents committee to leverage the required works be done, if we do it properly - so what should we do?

    For issues with building work/quality, contact your local authority planning enforcement section. They will follow up on planning and building issues.

    For change of use, the developer will need planning permission. As residents, you should lodge objections (cost of €20 per objection). Make sure that your reasons for objection are related to good reasons (disruption to the area, spoiling of the area, etc).

    Also, contact your local public representative, and ask about the Multi-Unit Developments Bill 2009. That bill would give you more power, if/when it's passed.

    Best of luck.


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    #5
    uberwolf
    Registered Users Posts: 7,580 ✭✭✭uberwolf


    kearnsr wrote: »
    You can get rid of the developers as directors. Check the details of your management company on how to elect directors. Its easy to do. I've recently done it

    we were specifically told that the existing directors could not be shifted due to the remaining unsold units.
    mrgaa1 wrote: »
    what are the issues?

    for the sake of not identifying the complex, I don't want to go into it.
    Paulw wrote: »
    For issues with building work/quality, contact your local authority planning enforcement section. They will follow up on planning and building issues.

    For change of use, the developer will need planning permission. As residents, you should lodge objections (cost of €20 per objection). Make sure that your reasons for objection are related to good reasons (disruption to the area, spoiling of the area, etc).

    Also, contact your local public representative, and ask about the Multi-Unit Developments Bill 2009. That bill would give you more power, if/when it's passed.

    Best of luck.

    we intend to lodge an objection. The change of use is fine tbh, but I'd like to take the opportunity to get a few of our issues resolved


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    #6
    How Strange
    Registered Users Posts: 6,339 ✭✭✭How Strange


    uberwolf wrote: »
    AGM last week, we had to reelect the developers solicitors as directors as the developers still own units on site (3 years after completion)
    Why did you HAVE to re-elect them. They offer themselves for re-election but you can decline that offer and other members can nominate themselves.
    There are a number of problems with the development which are a consequence of suboptimum work by the developers. All of these jobs would have been certified by the approp professional at the time, and now we have reports saying that the jobs are well below required level.

    Developer is washing his hands of these issues, and has managed to sell a few units in the complex in the last few months, and fobbed off these issues as problems for the management company.

    You need to get legal advice on this. You missed your opportunity to change directors so now you need to find out what you can do next. I can't see how the developer can wash his hands of the problems entirely but presumably the solicitors who are MC directors are also his agents so there could be a conflict of interest under the circumstances.
    Developer, like many, has applied for change of use and conversion of a retail unit in the site into an apartment. This may represent an opportunity for the residents committee to leverage the required works be done, if we do it properly - so what should we do?
    Lodge objections with the local planning authority


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    #7
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,215 Mod ✭✭✭✭godtabh


    uberwolf wrote: »
    we were specifically told that the existing directors could not be shifted due to the remaining unsold units.

    Where were told the exact same thing. The management agent was appointed by the developer and looked after their interest rather than ours.

    We went against them and got rid


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    #8
    uberwolf
    Registered Users Posts: 7,580 ✭✭✭uberwolf


    How Strange wrote: »
    Why did you HAVE to re-elect them. They offer themselves for re-election but you can decline that offer and other members can nominate themselves.



    You need to get legal advice on this. You missed your opportunity to change directors so now you need to find out what you can do next.

    this really bugged me all weekend. Specifically as we were also told one of the directors resigned earlier in the year and was replaced by another member of the firm.


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    #9
    athtrasna
    Closed Accounts Posts: 13,420 ✭✭✭✭athtrasna


    Vesting doesn't usually happen for a couple of years after the owners take control ie after the last unit is sold. I've been an owner director for 4 years this year and our development was only vested this year.

    Some developers hold golden shares where their voting power is stronger than owners while there are still unsold units.

    I would download the articles of association for your management company off the cro website www.cro.ie (small fee but worth it). They should clarify the situation with the voting power of the builder. If they misled you you should look into the mechanisms for calling an EGM to replace the directors.


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