Passing on service charge arrears a second time to the next seller

Lantus can I ask why the purchaser paid the arrears and why the Management Company allowed this transaction to take place. Your contract was with the vendor and it was they who were liable for the fees.
 
But surely, if the Management Company issued an invoice stating there are outstanding fees owed, the current owner would be prohibited from selling the apartment. He couldn't just 'pass on the debt' to a new buyer.
 
The new owner either paid the debt for him or gave him the money to do so.

Either way the MC got their money and the apartment can be sold.
 
the heat must be affecting me badly!!!

The Seller (A) paid the arrears to he OMC before the new owner (B) took possesion and completed the sale. The seller (A) used a third party company (C) to assist in the sale.

The third party company (C) which acted on behalf of the seller has now requested invoices detailing all the previsouly paid arrears to be issued to them so they can be passed onto the the new owner (B)....'presumably' so the new owner (B) can be made to pay for them. Why else would they need invoices at this stage? They openly stated that they would be doing this.

Maybe they are having a bad day at writing as well?
 
But new owner B would not have completed the sale unless he was assured that there was no outstanding charges. His solicitor would have made sure of this. Asking him to stump up for the arrears now is not his problem as they are not his debt.
 
lantus said:
the heat must be affecting me badly!!!

The Seller (A) paid the arrears to he OMC before the new owner (B) took possesion and completed the sale. The seller (A) used a third party company (C) to assist in the sale.

The third party company (C) which acted on behalf of the seller has now requested invoices detailing all the previsouly paid arrears to be issued to them so they can be passed onto the the new owner (B)....'presumably' so the new owner (B) can be made to pay for them. Why else would they need invoices at this stage? They openly stated that they would be doing this.

Maybe they are having a bad day at writing as well?
Click to expand...


OK, this is what we did in a similar situation in work. A has a contract to pay the arrears to the OMC. A paid the arrears to the OMC. Presumably, A is the only person who can request a copy of the invoice. If a third party company, C, want a copy of the invoice, then they have the correct authorisation from A to let them request these copies from the OMC. Otherwise, if the third party company C wants a copy of the invoices then they have to request them from A, who then has to request them from the OMC, and pass them onto C.

Now, I don't know the legalities of the situation, it's just the way I break it down in my head, and the way I've seen it done in a similar (but not the same) situation.

Does the OMC issue copies of the invoices on request? I do not know if the could, should or are obliged to do this. I know the company I work for (for an example of a legal document) doesn't issue copies of our P60s, and they tell us every year to be careful of them as they won't be re-issued.

What the third party company C want with the invoices is outside your control. I wouldn't worry about legalities, that's A, B and Cs problem!! However, who is entitled to the original invoice, and who is entitled to copies is inside your control, I would just deal with that.
 
So Andy owns an apartment has to sell but has arrears. As we all know Andy can't sell the apartment until the arrears are settled.

Barry sees the property is undervalued. As part of the deal he offers to pay the arrears for Andy. This should be in the contract. Barry gives Andy an advance of €10,000 to pay the arrears. Once the arrears are cleared by Andy the sale closes.

Barry flips the property to Colin and wants Colin to reimburse him for the money Barry gave Andy.

Why would Colin pay the arrears? If the property is for sale at €200k plus €10k in arrears, it's €210k sales price.

Barry has no right to Andys Invoices, it should be clearly stated in the contract that he paid the €10k.
 
Any arrears of management fees should be cleared before the apartment is sold. The management company must be very alert to any transaction that would leave the management company without payment. They will not be able to pursue the new owner for debts incurred by the previous owner. Any reissuing of invoices which have been paid probably comes under fraud legislation. The directors of the management company are responsible for the legal operation of the company
 
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