# steps for removing management company



## AKA (14 Nov 2006)

We are beginning the process of removing a management company from a housing estate.

Does anyone have a list of the steps or even guidelines on how to proceed?

A residents committee has been formed and the general consensus is that the residents of the estate want the company removed. 

There is a block of apartments / duplexes on the estate and the residents understand there that they will need to retain some form of management company.

2 phases of the estate are complete. Can these be handed over to the local authority? There will be further phases - but it's been about a year since phase 2 is completed and planning permission for phase 3 has not been granted so far. These other phases could take 10 years to complete by the pace of building. My opinion is that the further phases shouldn't proceed until the council takes over the earlier complete phases. But opinion isn't enough so I'm wondering what other people think.

In the planning permission for phase 1 it states there must be management company and for phase 2 there is no reference. Would this have any effect?

Even if we had to wait until further phases were complete is there anything we could be doing to make sure phases 1 and 2 are complete to the extent for the county council will take it over.  I think that some of the other phases will become other housing estates due as all other housing estates in the area are not big, in fact phases 1 and two of this estate make it one of the largest in the area already so the next phase could be the last.

Any info appreciated.

Thanks


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## mf1 (14 Nov 2006)

A. You need some very serious and specific legal advice. 
B. The process is not simple and is likely to be opposed. 
C. This is  likely to cost a lot of money. Who will pay? 
D. Local Authority will not necessarily be happy to take estate in charge. 

mf


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## Darth Vader (14 Nov 2006)

You need legal advice on this one. The most important thing to note is that the management company is likely to have had the common areas transferred into their name. This means that the management company is the legal owner. If the management company no longer exists, who is legally responsible for the common areas.? If this is not done properly you will have problems selling your property. 

I dont know if it is possible for the Management Company to legally transfer their interest in the common areas to a residents association.

Its not a simple matter and you will need to get advice before you preceed.


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## AKA (14 Nov 2006)

mf1 said:


> B. The process is not simple and is likely to be opposed.


 
From an initial survey and from attendence at the formation of the residents association the majority of people want to remove the management company - ie the residents want to the council to take over the housing estate



mf1 said:


> C. This is likely to cost a lot of money. Who will pay?


 
We may be able to source legal expertise from amoung the residents.



mf1 said:


> D. Local Authority will not necessarily be happy to take estate in charge.


Yes I understand this but planning permission was granted without the requirement for a management company. I understand also that this has been debated in the Dail and is currently under review. 
http://debates.oireachtas.ie/DDebate.aspx?F=DAL20061024.xml&Node=H6&Page=7


Darth Vader, i understand that in time the residents become the management company and they can vote on who to outsource the maintenance of the estate etc. i.e. get rid of the current estate.

The residents association is only the voice of the residents. I understand there has to be a majority vote. I understand that there can be an issue if the developer holds onto a number of units but I'm sure this is illegal as he could have a vested interest in the outsourced management company.

I know we contact our local politicians but what I'm wondering is if anyone has actually gone through the process for a housing estate?

Thanks.


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