Q.  What are the changes to the rules about apartment management companies?

02.05.11

The Multi-Unit Developments Act aims to regulate some of the issues that have caused disputes between developers and home owners, – in particular how the common areas (for example, halls and gardens) are managed and funded. From 1 April 2011, before a developer can sell any units in a new development, an owners' management company must be set up, and the common areas of the development transferred to it. For existing developments where one or more units have already been sold, the developer has 6 months – until 30 September 2011 – to transfer ownership of the common areas.

Each owner of a residential unit is entitled to membership of the owners’ management company and is generally entitled to one vote. If a different arrangement is already in operation, it can be continued provided it is just and equitable. The owners’ management company must hold annual meetings and provide reports to members. Services charges must be agreed and a sinking fund set up into which every member pays on a regular basis (for emergency or very large repairs).

When a unit in a development is sold or transferred, the membership of the owners’ management company automatically transfers to the new owner. It is not necessary to formally execute the transfer or have it approved by the directors of the company. In some existing developments, directors appointed by the developer are entitled to remain as directors for life. This is no longer possible after 1 April 2011 and directors in place on 1 April 2011 must cease to be directors by 1 April 2014 at the latest. All new directors will be limited to a term of three years.

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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