Management company struck off??

[leesider123]

Hi,

Has anyone heard of the following happening and what could i expect if it does? Where I stand? etc..
Basically, I was onto my management company trying to get windows cleaned. They were avoiding me for a few weeks but today I was told that they are running out of money. They only have 5 grand left and bins alone cost 2500 per month. The reason he gave was that 32 units not paying their fees. I'm not sure what percentage of the overall development that is but it sounds like a hell of a lot of defaults. I was told they have court dates coming up but regardless he said if they run out of money all services, bins, cleaning will stop. If this happens the company may be struck off which means nobody can sell (although thats prob not an option for anyone as the development is only a few years old). He also said if insurance bounces more than twice the policy will be cancelled?

If i knew all these risks, that u rely on others i would never have bought an appartment. Regardless, where does this leave me and others who have paid up.. Are we screwed or will this work itself out?

Thanks

 

[ontour]

Do you know what the purpose of the court date is? Is it to get the company reinstated? Companies are listed for strike off before they are struck off and there is a massive difference in the cost and time it takes to reinstate the company depending on which state they are in.

What is alarming is that you are only hearing about this after you contacted your management company. There are 32 units not paying fees, how many units in total in the development? Practically it is important to understand why owners are not paying and whether there is insufficient efforts to collect outstanding fees. You need to ask the management company for details of the finances and demand that the severity of the situation be communicated to the owners and an urgent meeting convened. The alternative is that you will own an apartment that is impossible to sell and uninsured. From a day to day basis no one will be looking after the services such as cleaning, security, refuse etc. Block insurance is usually a condition of mortgages on apartments so it would also invalidate your mortgage.

Your situation will not be that unusual, what is most important to realise is that the outcome is significantly impacted by the action / inaction of the owners.

 

[leesider123]

Hi,
Thanks for replying. The court dates I refer to are to do with the management company chasing owners to get the fees. Not sure how th elaw works here in getting people to pay up their fees.
Th ecompany isnt struck off yet. I was told that this could be the outcome if they dont have the money to run the development and it seems to be heading that way...
All this info was communicated by email to me on Friday. I will be ringing Monday for more info regarding how many units there are in total.
I myself think the company do an ok job so I reckon its possibly investors who just dont have the cash, im not really sure why they havent paid though. He did say that he tried many letters and phone calls to get the monies owed and as a result is going down the court route.
He also says they will be holding an EGM in the new year to notify everybody.

If the mortgage is invalidated by no insurance, what does this actually mean in real terms to me?

Thanks