Can I sell my property when management company in arrears?

zack01

Hi
This may have been touched on somewhere else but I'd appreciate any help or info anyone can offer.
I'm selling my duplex, the contracts are ready to go out but I've only just found out that the management co are in arrears to the tune of €50,000. To be honest we have withheld our payments in the past as the company were absolutely awful, the first AGM was called in May and everything seemed to be okay, we have since paid our arrears but now I'm hearing that the company are €50,000 down. Question is can we still sell our property and asking the obvious would a buyers solicitor tell is client to run a mile from us?
I'm aware that nearly all management companies are in debt but has anyone experienced my situation before?

peter_dublin

zack01 wrote: »

Hi
This may have been touched on somewhere else but I'd appreciate any help or info anyone can offer.
I'm selling my duplex, the contracts are ready to go out but I've only just found out that the management co are in arrears to the tune of €50,000. To be honest we have withheld our payments in the past as the company were absolutely awful, the first AGM was called in May and everything seemed to be okay, we have since paid our arrears but now I'm hearing that the company are €50,000 down. Question is can we still sell our property and asking the obvious would a buyers solicitor tell is client to run a mile from us?
I'm aware that nearly all management companies are in debt but has anyone experienced my situation before?

If you have paid all your fees to date, arrears included then you can sell, that said as you are aware any prudent buyer will check a Managment Companies filled accounts prior to purchase as it is a good sign to the overall health of the Management Company.

Of course this assumes by down you mean there is fifty thousand of outstanding fees owed by other owners.

The_Conductor

peter_dublin wrote: »

If you have paid all your fees to date, arrears included then you can sell, that said as you are aware any prudent buyer will check a Managment Companies filled accounts prior to purchase as it is a good sign to the overall health of the Management Company.

Of course this assumes by down you mean there is fifty thousand of outstanding fees owed by other owners.

Not necessarily true.
If the Management Company's finances are in deficit, and there is any query over the veracity of their accounting or the running of the company, the company can be struck off at the CRO and if they are deemed to have traded recklessly, the directors can be proscribed from holding directorships for specified periods of time.
If the Management Company is struck off- the assets of the Management Company are automatically transferred to the Minister for Finance. Getting the company reinstated, and its assets transferred back to it (you own a lease- not the property itself- which resides in the Management Company)- can be a process that takes years.

You *need* to get the Management Company back onto a sound footing.

The MUD bill specifies suggested contributions to a sink fund- its not obligatory however and can be overrules by quorum at an AGM. Does your Company have a current sink fund that could be used to offset the deficit? How did the deficit arise? Are there other members who are in arrears to the Management Company? What actions are being taken against them? These are all questions you need to ask.

Lantus

Chances of a compay being dtruck off are slim unless they dont submit annual accounts and even then its a very slow process and the CRO and ODCE give directors every chance.

The debt of the company is not an issue in relation to you selling your property. Your outstanding fees may be and typically should be paid up prior to a sale. This as an individual puts you in the best postion to sell and is your only obligation.

Victor

Lantus wrote: »

The debt of the company is not an issue in relation to you selling your property. Your outstanding fees may be and typically should be paid up prior to a sale. This as an individual puts you in the best postion to sell and is your only obligation.

While an OMC with some debtors is perfectly common, there are also some companies that are substantially compromised, which is affecting maintenance and other work, which affects the soundness and value of the properties.

Lantus

Victor wrote: »

While an OMC with some debtors is perfectly common, there are also some companies that are substantially compromised, which is affecting maintenance and other work, which affects the soundness and value of the properties.

But not the legal right to sell.

Victor

Lantus wrote: »

But not the legal right to sell.

Sure, but it affects the ability to sell at the desired price.

Paulw

While you can sell, anyone buying would be a bit foolish if they didn't fully investigate why there is so much debt, and what the full financial situation of the management company is.

martingriff

zack01 wrote: »

Hi
This may have been touched on somewhere else but I'd appreciate any help or info anyone can offer.
I'm selling my duplex, the contracts are ready to go out but I've only just found out that the management co are in arrears to the tune of €50,000. To be honest we have withheld our payments in the past as the company were absolutely awful, the first AGM was called in May and everything seemed to be okay, we have since paid our arrears but now I'm hearing that the company are €50,000 down. Question is can we still sell our property and asking the obvious would a buyers solicitor tell is client to run a mile from us?
I'm aware that nearly all management companies are in debt but has anyone experienced my situation before?

Hey OP can I just ask why is the MC down 50k. Is it because other owners have not paid. Is it the some "units" have not been sold and the builders have not paid there fees. Or is it bad finances by the MC. If it is c) might I suggest even though you are leaving you find out.

jd

50k arrears may be acceptable in a 200 unit development, it certainly wouldn't in a small development.