# Prospective Buyer entitled to review management company lease agreement?



## dilemma (3 Feb 2007)

I am considering purchasing a property in a  privately managed estate and have a problem I hope someone might be able to help me with. Having been advised of 3 different management fees by the EA, I decided to take the initiative and call the management company who would surely be able to provide transparency re charges and basic services rendered?? Apallingly, I have so far gotten yet two more different yearly rates from the management company and an outright refusal to supply a specimen contract for review by prospective buyer.  They have said that they do not hold the lease agreement and I need to contact my solicitor re same. Surely this is 'caveat emptor' gone too far? Surely I do not have to wait until signing day and incur legal fees to discover the rates and terms of what may be a 999-year financial committment. Consumer Agency says technically they are right, but in practice most would provide access to specimen T&Cs for the sake of customer service/ courtesy.  Feel free to PM me any info and thanks in advance!


----------



## GeneralZod (3 Feb 2007)

Was it the management company or more likely the management company's agent that you rang? 

I would have thought the vendor should have a copy of the lease that they could show you. Can they not show you a record of the management fees that they've paid in previous years. My management agents 
supply me with a record of all the fees I've previously paid.

These are questions I'd ask the vendor before deciding to buy and would happily walk away from it if they refused to answer.


----------



## Ravima (3 Feb 2007)

colleague in similar position with new development. management company being set up until estate is taken in charge by local authority. To my slightly jaundiced eye, this seems simply to be another vehicle by the developer to get more money from purchaser. She has now written to builder saying that this condition is not accceptable and she wants to be indemnified for all charges by him!

By the way, i also suggested that since it is a new build, she should insert a condition that the house will achieve the highest possible Building Energy Certificate under the new scheme.

I will report at a later stage as to how things developed


----------



## dilemma (4 Feb 2007)

Thanks for your replies.  General Zod, how would I know whether it was the management company or the management company's agent that I was communicating with?  I presume it was the former as they are listed as XXXX Property Management (I won't name and shame YET).


----------



## dilemma (4 Feb 2007)

Meant to say, also re your suggestion General Zod, that I should ask to see a copy of the vendor's lease agreement, I doubt I will get to see this because, as I previously mentionned, the agent is being extremely cagey about the management company fees (so far three different 'approximate' fees advised) and they are blaming this on the vendor, saying she is away a lot and it's too much hassle for her to find the paperwork.  The property is still advertised on myhome as carrying a €350 p.a management fee, which the management company have advised me is wildly inaccurate.  When I spoke to EA, they said they had been given this price by the vendor and I should accept the indicator given my the management company as a more reliable guide.  Yet, the EA is still happily advertising the €350 fee on its website.  The sheer incompetence, not to mention false advertising bewilders and angers me.


----------



## Thrifty1 (5 Feb 2007)

If you go to the NCA website, they have a download of all questions a prospective buyer should ask the agency, such as forcasted expenditure and fees for the coming years.


----------



## ClubMan (5 Feb 2007)

One thing to check is whether or not the householders will be controlling members of the management company or if it will be controlled by somebody else (e.g. the developer). At least if the former applies then you have some direct control over the management fees since you can elect directors and inflience the operation of the company. If the operation of the company is outside of your control then things can get awkward.


----------



## dilemma (5 Feb 2007)

Will do, thanks for the pointers, management company is now refusing to communicate with me, think it's a case of a 'one more chance' email before I name and shame, it's not libel if it's true and I've got a paper trail, right?


----------



## NCA2007 (13 Feb 2007)

If you have queries relating to Management Companies check out the following link for www.consumerconnect.ie the National Consumer Agency website.


----------

