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Buying apartment where common area not transferred to it's management company

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  • 11-05-2015 12:08pm
    #1
    mlb10theshow
    Registered Users Posts: 35 ✭


    Hello,

    Currently I'm looking at an apartment that is located in Stepaside, Dublin which is built around 2006. It's a lovely penthouse apartment but, the agent has mentioned when were viewing it that the common area of it is not transferred to the management company yet for some reason. It could be because the developer(Flemming) is not around anymore and the development is owned by Receivers. Anyway, we have made few offers thinking that my solicitor will check these out for us and my bank will their own check on this. The agent is telling me now that my offer cannot be subject to anything. I have told that my offer cannot be subject to by the fact the the development is not being compliance with MUD Act or surveying result or bank's decision on final mortgage approvals and etc. Basically she's telling me that once my offer is accepted that's it. The agent is from one of the big names. Can someone please advise us if these behaviour from estate agents are normal. Anyone has experience buying apartment that has similar problems?


Comments

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    #2
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Until both sides have signed a contract you can back out at any time. Feel free to make an offer and pull out later if they're playing silly buggers.


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    #3
    RobbieTheRobber
    Registered Users Posts: 6,830 ✭✭✭RobbieTheRobber


    Michael D Not Higgins wrote: »
    Until both sides have signed a contract you can back out at any time. Feel free to make an offer and pull out later if they're playing silly buggers.

    The agent seems to be playing a bluff with you. As MDNH says above there is nothing legal regarding your offer until contracts are signed and either seller or buyer can withdraw from the sale at any time up to this.


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    #4
    Kelly06
    Closed Accounts Posts: 509 ✭✭✭Kelly06


    As far as I'm aware, the transfer of the common areas under MUDs only has to take place when the last unit is sold in the development. If there are unsold units then you can't make this a condition of your offer as it is impossible to comply.

    You also mention a receiver, are you purchasing from a receiver yourself or is this a private sale?. This really does make a difference, you will get very little lee way in a receivership sale. It's more or less take it or leave it with a receiver. I would be more concerned that the management company is functioning well than the transfer of the common areas which will happen in time.


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    #5
    mlb10theshow
    Registered Users Posts: 35 ✭mlb10theshow


    Kelly06 wrote: »
    As far as I'm aware, the transfer of the common areas under MUDs only has to take place when the last unit is sold in the development. If there are unsold units then you can't make this a condition of your offer as it is impossible to comply.

    You also mention a receiver, are you purchasing from a receiver yourself or is this a private sale?. This really does make a difference, you will get very little lee way in a receivership sale. It's more or less take it or leave it with a receiver. I would be more concerned that the management company is functioning well than the transfer of the common areas which will happen in time.

    The below is what I could find on the web about MUD ACT. Anyway, I have decided not to go ahead because I was thinking that it's legally too complicated. Thanks for the advice guys.

    Existing multi-unit developments
    In developments where a residential unit had already been sold but the common areas had not been transferred to the owners' management company, the developer was obliged to transfer ownership of the relevant parts of the common areas to the owners’ management company within six months of the date the Act came into effect – that is, by 30 September 2011 at the latest. The developer remains responsible for the completion of the common areas.


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    #6
    P. Breathnach
    Registered Users Posts: 12,089 ✭✭✭✭P. Breathnach


    mlb10theshow wrote: »
    The below is what I could find on the web about MUD ACT. Anyway, I have decided not to go ahead because I was thinking that it's legally too complicated. Thanks for the advice guys.

    Existing multi-unit developments
    In developments where a residential unit had already been sold but the common areas had not been transferred to the owners' management company, the developer was obliged to transfer ownership of the relevant parts of the common areas to the owners’ management company within six months of the date the Act came into effect – that is, by 30 September 2011 at the latest. The developer remains responsible for the completion of the common areas.
    I think you did the right thing.

    I was involved as a seller in a situation where the developer went belly-up and a receiver took over. The receiver was working for the bank and was aware of the requirements of the MUD Act - but simply was not interested in doing the work involved to comply with it. And there was no way to compel him. It made selling more difficult, and affected the price I got.

    I was also involved as a potential purchaser in another situation where the common areas had not been transferred, and it was unclear why not. The developer was solvent, and all units had been sold. The OMC seemed not to be interested in pushing for compliance; I don't know why, but I suspect that the directors were clueless. Much as we liked the property, we walked.


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