Block policy insurance cancelled for low funds

R3alEstate

Registered User
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67
Hi,

I'm thinking to buy an apartment in an apartment block (can't afford an house) and I know pretty much everything I need to know bar one thing:

what happens if I have a mortgage and the other owners stop to pay management fees and therefore the block insurance policy get cancelled?

Kind Regards,

Katrina
 
That's very unlikely

Before you buy, your solicitor will raise Pre-Contract enquiries about the Management Company (MC) structure, accounts and general running.

A well run MC will keep good records and will be pro-active in chasing up bad debts.

If its a badly run MC, you'll be advised of the risks and you'll make a judgment call

mf
 
OK thanks, my solicitor told me that they can check if there are problems with the MC but not if all the owners are paying their fees, is that right?

In any case from what you say the MC have the power to chase bad owners, right?

My main concern is to buy and then have the policy cancelled, in that case I don't know what the Bank could force me to do.

Thanks,

Katrina
 
Your solicitor will ask for their annual/financial statement. This will have the debtors amount on it. If it's large then he/she will flag it. You can get the same document yourself online for about 6 euro and then ask an accountant/savvy person to look at it for red flag.
It is the MC's obligation to chase bad debt and you as a member will insist they do also so no problem there.
 
Thanks for your help, much appreciated. Could you explain me how and where I can get the annual statement online?

Thanks,

Katrina
 
You should be able to get it from https://www.solocheck.ie/ for about a tenner. Your solicitor will get the same copy anyway so just ask him for a copy to save yourself that at least (He has added a fee for getting and examining this document anyway as part of the service). Either way your solicitor should be well able to spot this but if you get a copy look under current assets/debtors and then fish down to the breakdown of the debtors. It's usually split between trader which means money owed to work done and arrears which is what the members owe.
Note: I am not a solicitor or an accountant
 
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