MUD and Developers in recievership/liquidation

L

Luternau

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I live in a development where there is a large amount of work in common areas outstanding. However, the developer is in Receivership / liquidation.
What chance have we got of getting the work due on these paid for by the receiver?
Should costs related to completion of the site rank above secured creditors?
MUD does not specify anything for this scenario.
Any info on this would be greatly appreciated.
 
Can anyone offer advice on the following:
Under MUD there is a requirement on all developers to complete the development to specification and according to Building, Fire Health & Safety Regs etc. Where a developer is in receivership and matters on site have not been completed does the Receiver have to fulfill the contract of the developer before disbursing monies to secured creditors?

Given that in many of these cases there are realisable assets to fund the completion of common areas so my hope is that in these cases the contract to build and complete the development to specification takes priority over paying secured creditors from the proceeds of assets. If it does not, it may result in serious compliance matters (Building Regs, Health & Safety etc) for the Owners Management Company to address under MUD or other legislation-which it may not have the financial means to undertake.
 
The problem is the MUD bill is not retrospective.

Therefore the onus on the developer is not valid if the developement has been completed. There is a stipulation in the act that all common areas in a developement that has at least one sold unit must be transfered to the management company within 6 months of the act coming into being. So if you are in this situation the management company can refuse to take ownership of the common areas until they are brought up to speed. My understanding is that in practice unfinished developements will not be allowed to happen in the future, however there is an element of closing the door after the horse has bolted on this one
 
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