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Homeowners face sales nightmare
13.05.11
HOMEOWNERS living in
private housing estates in Inishowen have been
warned to pay their management company fees or face
not being able to sell their home.
Franklin's estate agents said many property owners
in developments around Donegal cannot execute a sale
because their development is not managed by a
registered management company. This is a condition
set out in the original grant of permission for the
developer.
Franklin's director Brendan McGee, from Buncrana,
said: "This requirement sets out that all multiple
developments must have an active management company
in place at all times until such times as a local
authority takes over the ongoing maintenance of
same.
"The said management company must then ensure a full
set of management accounts are filed on an annual
basis as per normal company law and there will be an
obligation to provide all insurances including
public liability for all communal / green areas etc. |
"Without the above
being in place a sale cannot be executed as the
lender will not provide finance for any properties
within."
Franklins estimate that between 12 and 15 properties
are being agreed for sale in Donegal each month.
"From this figure it is our belief around half
require finance to complete the transaction while
the others are in the fortunate position where they
can buy without needing a mortgage.
"Franklins have found that there are several
developments throughout the county where active
management companies are not in place and as a
result sales that agents and vendors work hard at to
arrange, cannot be executed and the proposed sale
falls flat on its face as the lender will not
release the funds." |
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Brendan McGee. |
Mr McGee added: "In
addition to those requiring finance those too who do
not need finance will also be ‘advised’ by any
competent solicitor that if they go ahead and buy,
they may have difficulties if they decide to sell at
a later date."
Franklins strongly urged all home owners living in
developments to pay their management fees and ensure
their management company have submitted all relevant
accounts for their development.
"By assuming because someone is cutting the grass in
the communal areas you have an active management
company, we urge you to think again. It may not be
today or tomorrow that you wish to sell but one day
every owner will require a fully functioning
management company in order to execute a sale when a
buyer is found. |
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