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Buying house in estate with management company in place

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  • 04-12-2017 11:41pm
    #1
    adam88
    Registered Users Posts: 1,609 ✭✭✭


    Hi guys I’m buying a house in an estate where over 80 percent of the houses are still owned by the developer. Built in 07 and he rented them out till prices recovered.

    Now the estate is in immaculate condition and all houses and common grounds are well kept.

    The developer is releasing these onto the market in small pieces as and when leases expire.

    Something isn’t sitting right with me that once these houses are sold the management company and more importantly their maintenance will go to pot. Any one any experience


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    #2
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,359 Mod ✭✭✭✭Gumbo


    The residents either appoint a management company or the council can take it in charge.


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    #3
    Lantus
    Registered Users Posts: 3,027 ✭✭✭Lantus


    kceire wrote:
    The residents either appoint a management company or the council can take it in charge.


    Not quite. The common area lease will specify what will happen. There should be an omc in place and the developer will be a director most likley. He may be using this to collect fees but doesn't have to and if renting units will just be building fees into rents.

    Once he sells most his units he must legally transfer the common areas to the omc and the lease may say to the local authority but it's unlikely these days. They may get roads and street lights and drains but the omc will likley still cut grass. Plus there is the associated company costs.

    At this time unit owners should take over the role of directors.

    The company might use a third party to manage the estate on its behalf. This is a managing agent.


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