Commercial Property

Developer of our building hasn't handed over the common areas

Q I AM a director of the committee that runs our apartment block

Thu Nov 3 2011 - 00:00

Q I AM a director of the committee that runs our apartment block. The developer should have handed over all the common areas on Oct 1st under the Multi-Unit Development Act (MUD) - but we cant track him down. What can we do?

A First of all, there are no directors of committees so it is important to clarify whether you are a member of a committee (which is only an ad hoc informal arrangement) or are a director of the management company, as the options to resolve the issues are different. If the developer did not transfer the common areas of existing multi-unit developments by September 30th, as he should have, a unit owner or the Owners Management Company (OMC), can apply for a court order directing the developer to transfer the common areas.

If the OMC is still in the control of the developer there are provisions within the Companies Acts where 10 per cent of the membership can call an extraordinary general meeting and seek to take control. Searches in the Company Registration Office (CRO) would identify the directors of the management company who may still be the developers and provide details of the developers too including their registered office.

The MUD Act does not have any particular features available to apartment owners who may now find themselves suffering from the consequences of their developers being without funds or having gone out of business.

READ MORE

These circumstances are clearly difficult and to ensure you act in the best interest of your development and all its owners, professional/ legal advice would be strongly recommended. It is important to be aware that any application to the courts will have associated risks and such costs may not be recoverable.

Siobhan O’Dwyer is a chartered surveyor and chair of the property management professional group of the Society of Chartered Surveyors Ireland, scsi.ie

Send your queries to property@irishtimes.com or to Property Questions, The Irish Times, 24-28 Tara Street, Dublin 2.

This column is a readers’ service. Advice given is general and individual advice should always be sought