Management fees advice

JohnnyTodd

Hi all,

Just got a letter threatening legal action for my refusal to pay management fees.

I bought my house three years ago. There was supposed to be a green developed opposite my house. Instead it's just huge mountains of muck as the builder never bothered to finished the area.

Also the road was never surfaced. I have made it clear with management company when this is completed I will pay.

They say it's not their problem and to take it up with builder ( who sits on the management companies board)

Am I within my rights?

Milk & Honey

No. Trying an argument like that in court is going to cost you.

Paulw

Way outside of your rights. The management company are well within their rights to take you to court (and they will most likely win).

Your contracts, that you signed, I'm sure don't specify what must be there and completed. It is the responsibility of the builder to complete the development, but it is the responsibility of the management company to collect fees and run the development as best it can, with the funds collected.

Your best course of action - pay up in full, quickly.

If the development isn't finished, contact the planning section of your local authority and see if they can help with that.

markpb

Interestingly, a solicitor gave a talk at tonight's Apartment Owners meeting about debt collection. According to her, the district court judge for Dublin has interpreted the MUD Act as saying that all (small) debt collection cases must go to the district court and all complaints about lack of services, etc must go to the Circuit court. The upshot of this is that (s)he won't listen to any defense argument relating to a gripe against the management company. Owners can take a different Circuit court case to deal with their gripe but they'll lose the District court case.

TL;DR Pay your service charge, you'll lose a court case and probably end up paying interest and both your and the company's legal costs.

wexford12

We have this problem where I live there are are about 20 houses that wont pay the fee, They will be brought to court and be made pay. Remember you cannot sell your house until your fees are fully paid and these monies cannot come out of the sale of your house it has to be fully paid before sale can proceed.The bigger point to be made is that it costs money to bring you to court guess who has to pay that "The Management Co" ie.. you and your neighbors which will put the cost of your fees up next year.No matter how you explain to people they still have a gripe with the builder over the roads green areas etc etc . They are not what your paying fees for its the up keep of the estate and what grounds are done if everyone paid there would be a sinking fund that could be made available for any work that needs to be done

Lantus

non payment of fees is never a solution. The odce guide to management companies makes this very clear.

Best bet is to get you and your fellow residents involved in your managment company. As residents you can become directors!!! and control your own destiny.

OMC's are required to hold AGM's every year to vote in the budget. (ad vote in new directors if proper notice and procedure is followed.

Form an RA to voice the residents concerns. Get things fixed and quickly take over the OMC. The developer is more than likley fleecing you all as no one questions the books. (landscpaing is the easy one. whatever they are charging they are only paying out 25% of that figure)

you my friend are a cash cow.

However, pay your fee's, take the hit and then get on their case. Mobilise the people. You can reject budgets.

If no AGM's have been held demand them and if not forthcoming raise with ODCE who can enforce them.

macshean

If a landlord has not paid or has not fully paid up to date their fees have they a right to Vote on a OMC?
Regards
Macshean

Paulw

It depends on the Lease contract and the Articles of Association of the management company, but in general, No. If fees aren't paid, then the unit owner doesn't have a vote.

Borderfox

Whats the situation if the builder hasnt handed back the common areas in a complex after 12 years so even though I am a director we cant change the management company.

athtrasna

Are all issues with the common areas resolved? Do you want them back? We made the mistake of taking over the common areas before we noticed a common problem in all railings...they hadn't been properly galvanised...meaning the MC was now responsible..rather than the developer.

I don't know why a developer would be interested in holding on given that they are liable for the upkeep of common areas prior to vesting?

Paulw

Borderfox wrote: »

Whats the situation if the builder hasnt handed back the common areas in a complex after 12 years so even though I am a director we cant change the management company.

You mean you can't change management agent? How come? The management agent has a contract with the management company. So, if you're a director of the management company, then you can simply let go the agent and hire a new agent.

What excuse have you been given to say you can't replace the management agent? Who pays the management agent? If the management company pays the agent, then I see no legal reason why you can't simply hire a new agent.

Borderfox

There are still some issues with the common areas and these have to be resolved before handing over, other than that there are not enough resident directors to vote against the current management company. Currently the management fee is €1600 per year with no lifts/electric gates/grass areas only waste/insurance

Paulw

Borderfox wrote: »

There are still some issues with the common areas and these have to be resolved before handing over, other than that there are not enough resident directors to vote against the current management company.

Common areas issue being resolved is an ongoing issue for many developments, however, this should not impact the running of the management company.

Is the developer still on the board of management of the management company? Does he/she own any units?

Have they been a director for more than 3 years? If so, they MUST stand down, by law, under the MUD.

I'm confused by your situation.

Borderfox

The developer has been on the board of management since the properties were built but from what I can see the whole family have been on the board so I cant say specifically which ones were there for 3 years in total. The developer sold the last of their units last year and I had been to a meeting to discuss the difficulties with handing back the common areas. For the first year the new management company came in the presented a budget in May where our lease states that any new budgets have to be presented before January of the year in question and can only increase by 10% over the last fee?

Paulw

Borderfox wrote: »

The developer has been on the board of management since the properties were built but from what I can see the whole family have been on the board so I cant say specifically which ones were there for 3 years in total. The developer sold the last of their units last year and I had been to a meeting to discuss the difficulties with handing back the common areas. For the first year the new management company came in the presented a budget in May where our lease states that any new budgets have to be presented before January of the year in question and can only increase by 10% over the last fee?

Keith, you need the MUD Act.

No director can be on the board for more than 3 years without being re-elected.
Budgets must be proposed and approved at any AGM.
Audited accounts must be presented for discussion at the AGM.

Sounds like you need to remove the sitting directors, and then just replace the management agent.

Drop me a mail, if you need more info.