Apartment complex has sold... what to look out for

Chris_5339762

Hi all,

I own an apartment in a development of about 90 units in the north Dublin city area. Only about 10 units were ever sold, the rest were kept by the developers and rented out. This has been the case for about the last 10 years and everything has been reasonable. Although we didn't have a MUD compliant management company (we had a functional halfway house, as I call it, management fees were paid and stuff generally got done), things are ok apart from difficulty getting aesthetic things sorted.

The development has now been sold, as a lot, to a new owner. The old owners have left and as yet we haven't heard from the new owners. Now, I know who they are, unofficially, but they haven't introduced themselves.

There are a list of things, mostly minor, that I'd like them to do around the complex, but I guess that will come out in time. As far as I know a "new" management company has been set up, but there was a lack of a dedicated sinking fund as far as I'm AWARE. The old developers didn't have an official one they used their company to fund anything big.

My concerns are the following
- This sinking fund... will the new owners having spent several million to buy the complex, put a few 100k into a sinking fund or will they land owners with a hefty bill to set one up which we couldn't really legally protest about?
- Transfer of my paid management fees from the old owners, for say 9 months of the paid year that is remaining.
- Getting in touch with the new owners if something big breaks, as we do not yet have their details
- Massive increase in management fees which owners would be outvoted on at an AGM because of the owners owning about 75% of the units
- If I wanted to sell myself now, how easy will it be?

Does anyone know how to solve any of these issues, and more importantly, if there is anything else I should be aware of, or be worried about?

Thanks.

the_syco

Chris_5339762 wrote: »

Only about 10 units were ever sold, the rest were kept by the developers and rented out.
...
The development has now been sold, as a lot, to a new owner.
...
Now, I know who they are, unofficially, but they haven't introduced themselves.
...
If I wanted to sell myself now, how easy will it be?

I'd say the lack of a sinking fund would be a red flag to anyone thinking of buying your place. Would you consider seeing how much the developers would pay for your apartment?

Chris_5339762

I'll be going to them first, thats for sure, if I wanted to sell. Work etc would not make it practical in any way to sell up right now.

I bought it at the bottom of the market so even if I priced it so low as to barely make a profit, I reckon it'd sell regardless of the sinking fund issue. Though I would rather sell it for market price, and then some!

antoinolachtnai

I think the minority owners need to get together and decide what they want to do and decide whether they want to get legal advice or how they will work together to negotiate with the new owner.

This could turn into a pretty technical piece of law. The issue is that the majority holder is not entitled to do anything that would reduce the value of your apartments. But it might be difficult to make sure this is the case in practice and that’s where the technicalities arise.

If this single owner owns almost all the units thry should be putting up almost all the money for the sinking fund.