management charge

[AKA]

How exactly are management companies fraudulent? Buyers of properties that are governed by management companies (including myself - house rather than apartment) are apprised of the details by their solicitors when buying and become members/owners of the companies with full control over how their developments are managed. What is wrong with that?

I know buyers are aware that they have to pay the charge. But it's a case of having to to buy the house. What is wrong with it? 2 estates side by side in the same area. The house owners in the new estate that is 20 years old do not pay a maintenance charge and the estate is managed by the council. The owners of houses in the new estate have to pay a maintenance charge.

Sounds like rates to me in another form.

 

[N.I.H]

Re: I was mugged by a solicitor today......

Ireland should have domestic rates or a council charge like everywhere else in europe, we expect low taxes and the council to provide all its services for free.

 

[Thrifty]

Re: I was mugged by a solicitor today......

NHI, really glad they don't have a council charge here. Although they do in England their standard rate tax band is higher than ours. i personally feel i pay enough tax at the moment through earnings and the high VAT added to everything. Also having lived in England it seems council tax hits the lower paid, pensioners etc hardest as its not based on earnings but on the value of the property.

 

[ClubMan]

Re: I was mugged by a solicitor today......

I know buyers are aware that they have to pay the charge. But it's a case of having to to buy the house.

They don't have to buy if they are not happy with the private management company arrangements/lease/charges.

What is wrong with it? 2 estates side by side in the same area. The house owners in the new estate that is 20 years old do not pay a maintenance charge and the estate is managed by the council. The owners of houses in the new estate have to pay a maintenance charge.

Sounds like rates to me in another form.

It's not rates. It's a private management charge. Some people are happy to buy properties in such developments and fund/control the management of their estate themselves (by way of the management company who may or may not engage a management agent to do the day to day work). It's a free choice. Nobody is forcing people to buy in these estates but if they do then they generally sign a legally binding lease agreement committing themselves to becoming a member/shareholder of the management company and to paying the charge as set annually.

Personally I would be happy for our estate to be taken in charge by the council but given that it seems like a majority of the other householders do not agree and that I signed up to this in the first place I can't really complain.

 

[Seagull]

I know in our case, the council will not take the estate in charge untill all building is complete. I think there's a period after that as well in which they can ensure that all the infrastructure (lighting, sewage, etc) is up to the required standards.