3 years of AGM Minutes not being released to Solicitor for Sale agreed Apartment

00yeah00

Hi,

I have recently gone sale agreed on an apartment and my solicitor highlighted to me that the Management Company will not release the AGM minutes for the past 3 years due to confidentiality reasons.

I have expressed concerns that if I don’t receive these minutes would most likely affect me progressing with this sale due to uncertainty of any potential issues within the building which my solicitor has passed on to the vendors solicitor.

He has mentioned that although the vendors solicitor requested these documents, they are not hopeful on receiving these.

I had a surveyor out last week and there was no major issues reported back.

Does anyone have any advice on steps I should take here? Feeling a bit disappointed as this apartment is perfect for me but I definitely don’t want to walk into somewhere with potential issues

Thanks!

RichardAnd

Something similar happened to me some years ago. The vendors solicitor made it difficult to get the management company documents. However, when they did arrive, they revealed that there was essentially no money in their accounts to maintain the building, and several residents were reporting issues with the structure that were not being addressed. I pulled out of the sale shortly thereafter.

If they had nothing to hide, they would not hesitate to let you have the documents, in my opinion.

paul71

The financial statements are certainly not something that should be subject to confidentiality concerns although the minutes might be.

hometruths

Slightly OT, but in an apartment block, who owns the land that the building sits on? Is it the management company?

Marcusm

look to p6 here and tell the vendors solicitor that it would be in his/her clients best interests to demand the right to inspect the minutes or else a reference will be made to the ODCE. You are not a a member (yet) and have no right to an inspection. The vendor and/or solicitor would have to confirm that there are no matters of which you should be aware (solicitors undertaking) and arrange a retention until you become a member and inspect them yourself. The retention would be released when you have satisfied yourself of this or a claim made on the solicitors undertaking if it was false. Ultimately this only covers what was recorded on the minutes and not any actual unacjnowledged faults or problems. The directors and shareholders can agree to change the constitution of the company to permit the solicitors told prospective buyers to review the minutes in the alternative.

Former Former Former

https://www.boards.ie/discussion/2058368400/3-years-of-agm-minutes-not-being-released-to-solicitor-for-sale-agreed-apartment

Hmmm.

The correct route is they give the “MUD” docs to the vendor who then gives them to your solicitor. As a shareholder in the company, the vendor is absolutely entitled to them and his solicitor should know that.

You absolutely should not proceed without these documents, otherwise you’re signing a blank cheque for future problems.

One thing to note though, most management companies won’t release documents to an owner who isn’t up to date on their annual fees, so that’s a possible explanation, and you’d inherit their debt.

There’s something fishy there anyway.