Management Charges

[Patsy71]

I am due to close next week on a house in a new housing development. The builder is charging me a management charge of €400 on the completion. (Which will be due every year after that)

I have heard management charges on a housing development are considered illegal, and that they only really apply to appartment complexes (due to common areas and insurance reasons)

Does anyone know anything about this? Should I pay the charge when I am closing next week?

 

[ClubMan]

They are certainly not illegal at the moment. You may be thinking of this sort of recent discussion. Note that while the charge may be €400 initially it could well vary in future years. Note also that householders are normally members/shareholders/part owners of the management company. There are on the whole area of management companies and agents that might be worth reading. Your solicitor should also apprise you of the implications of buying in a privately managed estate and signing the legally binding management company lease.

 

[CCOVICH]

Very much legal, never mind 'Dick' Roche. No keys if you don't have the €400 when closing, in fact this will probably be taken out of the mortgage cheque anyway.

Housing have common green areas and maintenance needs, similar to apartment blocks. Apartments have interior maintenance costs, refuse, and buildings insurance costs, whereas houses owners would be liable for these costs themselves.

As ClubMan says, the charge may vary, this will depend on the costs incurred by the management company (of which you will be a member).