There is often confusion between what the ‘Management Company’ is and what the ‘Managing Agent’ is. Under the terms of the Multi-Unit Development Act 2011 the Management Company will now be called the Owners Management Company to try to help make the distinction clearer.
The Owners Management Company is set up for two distinct reasons:-
- To take over the running and control of the common areas of the development and
- By allowing apartment owners to be members of that company, to facilitate the owners having control of the development overall when it was finished.
Unfortunately with the massive changes in the property market seen over the past couple of years, many apartment owners now find themselves in a situation where the developer still controls the management company so that even where the handover of the common areas might now take place, controlling the company is still beyond the reach of members.
Services we offer to Owners Management Companies include: (these should all have links):-
- Advice to Board of Directors on legal obligations
- Transition in the Owners’ Management Company from developer control to owner control
- Advice on warranties, guarantees, Homebond, Premier Guarantee, Insurance, Planning and Health & Safety laws, Employment law
- Drafting policy documents for e.g. service charge collection, service of documents, management of capital expenditure
- Contract negotiation with service providers
- Mediating disputes between owners
- Advice on enforcement options e.g. if there is a breach of planning permission
- Pre-litigation advice which may include advice on dealing with developers, lenders or insolvency
- Financial advice on service charge and sinking funds
- Re-instatement of companies struck off
- MUD Impact & Good Governance Assessment
- Dealing with your Managing Agent
- Induction seminars for Directors
- Litigation and debt collection matters
Pro-Active debt Collection
Tax & Finance
Apartment Law Made Simple
- We are happy to advise and work with Owners’ Management Companies in relation to the transfer of common areas. To do this in a cost-effective way, we will need access to the agreement which would have been entered into originally by the developer with the Owners Management Company.
- Under the MUD Act, it is set out that where 80% of units in the development have been sold, then the common areas must be transferred to the Owners Management Company by the 1 October 2011, at the developer’s expense. This doesn’t in any way remove the obligation on the developer to finish the estate. It does mean that any control that the developer has over the common areas is effectively removed from them and passed to the apartment owners through the Owners Management Company.
- As part of this process, there is other documentation which has to be handed over to the Owners Management Company which includes the Health and Safety file, guarantees and warranties in place and copies of the Leases in place with individual apartment owners. There is a schedule of these requirements outlined in the MUD Act.
- Where there are disputes or concerns on any of these issues, the work involved in this handing over can take longer than expected. For this type of service, we usually work with the directors of the Owners Management Company. As the standard and quality of information available can vary very significantly from one development to the next, it’s important that we compile as much information as we can before agreeing a fee with you. By taking this approach, an accurate fee can be assessed and agreed with you.
For some of these services we are happy to agree fixed prices with you. Please refer to our Pricing page for example of standard fixed prices, or contact us directly by phone, email or enquiry form to discuss your needs in detail.
Where we unable to provide a fixed price due to the nature of the service being provided, prior to commencing any work, we will agree with you the basis on which all charges will arise.
Contact us directly by phone, email or enquiry form to discuss your needs in more detail.