multiunit act 2011 - developer/owner

[rustyjack]

hi,

my father developed, built and owns a 16 apartment block around 10 years ago. He has never sold any of the apartments but he rents them out. So he is the developer and owner of all apartments.
There is a property management company - all the family are directors - and this takes care of the common areas, block insurance etc..

So, does he still need to setup a owners management company with transfer of common area property and sinking fund etc?

My understanding is that this only happens when he sells the first unit.

many thanks,
rusty

 

[lantus]

hi,

my father developed, built and owns a 16 apartment block around 10 years ago. He has never sold any of the apartments but he rents them out. So he is the developer and owner of all apartments.
There is a property management company - all the family are directors - and this takes care of the common areas, block insurance etc..

So, does he still need to setup a owners management company with transfer of common area property and sinking fund etc?

My understanding is that this only happens when he sells the first unit.

many thanks,
rusty

He doesn't need to set one up because as you say he already has done that and he and his family are the directors. If he owns the title deed then this should of been transferred to the company by September 2011.

Its a tricky one bacause he and the directors are both members and directors at the same time. How does he cater for budgets and voting for budgets at AGM's?? Possibly not because it is still classed as the developer phase

Possibly there are no members becuase technically he is the owner. Its a tricky one! Consult the MUD act and take proper legal advice I think.

 

[rustyjack]

Thanks very much lantus.
From my reading of the multiunit development act 2011, he is not actually in the development phase as no unit has been up for sale.
I have read in some articles that the act only applies when the first unit up for sale /sold.

Therefore, my understanding is that the MUD act does not apply and he does not need to setup a owners management company and transfer the common areas, sinking fund to that management company.
I am making a distinction between the existing property management company (setup as a public company limited by guarantee to take care of common areas of the building) and the owners management company which was introduced by the 2011 act.

thanks,
rusty

He doesn't need to set one up because as you say he already has done that and he and his family are the directors. If he owns the title deed then this should of been transferred to the company by September 2011.

Its a tricky one bacause he and the directors are both members and directors at the same time. How does he cater for budgets and voting for budgets at AGM's?? Possibly not because it is still classed as the developer phase

Possibly there are no members becuase technically he is the owner. Its a tricky one! Consult the MUD act and take proper legal advice I think.

 

[Dermot]

My view would be that if your father and no other family member owns any apartment in the block that the MUD act does not apply in the situation that you have outlined. I have read the mud act some time ago but as I was not looking at it from that point of view I am not stating this absolutely. Download a copy of the Mud Act and have your solicitor have a look over it. It should not cost a fortune to get an opinion. There is about 35 pages to print off. Your solicitor might not have a copy of it to hand. You could have a read of it yourself beforehand so as you can discuss it better with your solicitor

http://www.irishstatutebook.ie/pdf/2011/en.act.2011.0002.PDF