Management Company never set up

[Dave Byrne]

I bought a new house (one of 3 in a small development). The developer was to set up a management company but never did. Who is now responsible for the common areas (road, sewerage, lights, grass), the developer (who seems to have disappeared), the residents or the Council ? Thanks

 

[Leo]

Check with the council whether there was a formal handover. If the developer failed to set up thee management company and subsequently disappeared, then there's a good chance they didn't complete the hand-over process either. If that is the case, the owners of the 3 properties are responsible for these common areas.

 

[mtp]

I bought a new house (one of 3 in a small development). The developer was to set up a management company but never did. Who is now responsible for the common areas (road, sewerage, lights, grass), the developer (who seems to have disappeared), the residents or the Council ? Thanks

The legal obligation to set up a management company in development arises under the MUD Act which county council apply to planning permission by inserting a condition requiring the developer to set up the management company . The MUD Act applies to development comprising 5 or more residential units. Check the planning permission and see how many unit permission was granted for and that should let u know whether or not MUD Act applies .