Management Company requirements

hynsey

Hi folks,
Just looking to see if anyone has any info about this stuff.

I'm living in a relatively new estate (about 6 years old) for the last 4 years. There is still development ongoing, new houses going up each week.

Our management company (currently run by the developers) has decided that "There is no Maintence/management fee,we just collect everyone's block insurance payments and bin charges for the year and pay on your behalf".

So our charges that we pay to the management company, are for bin collection, and block insurance.

Now, is it legal that a management company can just drop regular responsiblities? For example, there are common areas and stairwells in the apartment blocks. It is my understanding that it's a legal requirement that fire alarms in these areas must be tested and verified every 3 months.

No one is doing this sort of thing in the estate, and I'd just like to know where we stand before raising it with them.

Anyone got any ideas, or experience of this kind of thing in the past?

Cheers.

dubrov

The builders may be running the management company but they are just appointed by the members (owners) to perform duties on their behalf.

Remember the management company is just a group that represents the interests of all owners. If owners don't like the way it is operating, it can easily be changed.

If you feel these duties need to be performed you can contact the directors of the management company and suggest as much. If they refuse, you would could reject the proposed budget at the AGM if you get enough other members on board (I think you need 75% of votes cast on the night).

If you really want to know what is going on in the management company you could seek election as a director.

Santa Cruz

The fact that the developer is still on site may be an issue ans there may not be an opportunity to become a director. I would recommend though getting all the new owners to meet and form an interim committee to deal with the developer. Maintenance of common areas, cleaning will have to be an ongoing job/ I'm sure that the developer will meet as he won't want any aggro if he still has houses to sell

Del2005

Have a look at the MUD Act for the requirements of the Management Company. Then contact your current one and tell them what they are required to do, if they refuse call an EGM to kick the current directors out.

Lantus

complicated and I will provide you with more questions.....

firstly is the building of new houses all related to the same Management Company as the one you are in? It could be a different legal entity.

Secondly, the fact that the estate is still being build is problematic. You need to check your articles of association which you can get off the CRO if you don't have a copy with your company number or name. These will outline the rights and responsibilities of the directors which will be to maintain all the common areas and buildings to cut a long story short.

The appointment of new directors can be restricted until the common areas are transferred and I have come across some articles that have this clause with other companies.

If the buildings are occupied and you have apartments with common entrances that have fire alarms then these must be legally maintained and serviced by law. The type of servicing will depend on the alarm installed as to specific requirements. Buildings insurance on the block policy will normally require certs or confirmation that the alarms are operational. Fire officers and LA fire officers do not like fire alarms with no proper upkeep so liaise with tem if the responsibility lies with the developer.

However, a lot of the MUD act applies where 80% of the estate has been completed. If it isn't then your estate is unfinished. I do not believe that this absolves the directors form holding AGMs or producing proper books of account or budgets which need to be voted on. You will need to read the MUD act which is free online.

The last two documents you need are the common area lease agreement and your own contract lease.

No real sinking fund or plan to ensure the long term strategy of these buildings will cause you and your fellow residents nothing but heart ache and problems in future years.

Get the ODCE handbook on owners management companies (free online) which you can also request a free hard copy of from them.

The key thing is to get clarification from the developer what he 'thinks' his responsibilities are and also your own certain knowledge as to what they should be based on all the documents above. The common area lease may outline who is responsible for maintenance until the areas are transferred. The fact they want members to pay for insurance and bins would seem to indicate you are liable but its being done in totally the wrong way and this is no way legally enforceable.

However, before you all punch the sky remember if you don't pay you will suffer from no insurance/services. The builder 'should' hold and AGM and issue a proposed budget as far a I can see and missing out everything seems counterproductive and wrong. Without having more specifics its very hard to know what the exact situation is. But without a budget being voted on at an AGM by the members present any requests for money are being done on legally shaky (read non existent) grounds by the developer.

Get organised with your fellow residents and get talking to the right people. This should be the directors directly and you can get their names and addresses off the CRO if your unsure who they are for €3.50.

Let us know how it goes.

hynsey

Thanks folks for the posts, very helpful info. I've a fair bit of reading to do by the looks of it

The new development is all being done by the same builders, the same company who are running the management company. As far as I'm aware there's no annual meetings, publishing of books, accounts, voting etc. But I'll chat to some neighbours who are here longer than me and see if they're aware of any of this either.