Buying a house- Management Company issues

D

Dove2011

Guest
Hi all,
Just new here- just googled some information and the site came up- so maybe someone here might be able to help me.
I am at present in the process of purchasing a house FTB. Mortgage is with AIB.
Its a second hand property; finished in 2007- structural survey completed no problem with the house.
The main problem is the developer never transferred the common areas to the residents- the two directors is the developer and his wife and have not kept up to date accounts- last accounts was 2010- in July the developer proceeded to transfer the common areas in which time the CRO struck off the company- since 19.09.2012 the status is back to normal- so I am presuming it has been reinstated.
My solicitor doesn't want me to purchase the property until the Management company is in order but I spoke to one of the residents of the estate only last week- no one has communicated them that the transfers is taken place- that they do not want a management company(they confusing the OMC with Management Agent) and they are waiting on the county council to take over the estate.
So where does this leave me- can I push for the sale to go through if the residents does not want a management company or do I have to wait until they set up a management company. This has been ongoing for 6 months and I am highly stressed over it.
Any advice would be greatly appreciated.
Thanks
 
You are free to do what you wish. If you want to buy it, buy it.

But you should be listening to your solicitor. This is clearly a property in an estate where there are serious issues pertaining to the management structure. The issues are there now and they will be there when you buy and will continue until the issues are resolved.

Personally, I would prefer not to buy into an estate where there were outstanding issues and I would be looking at other properties.

mf
 
if the management company fails it may not have any real effect on you. However, if you ever want to sell the house again the next buyer will be asking the same questions that you are now asking. I was in a similar situation before with an apartment that I was selling. The MC at the time was listed for strike-off (but was never struck off). I asked around at the time on what the procedure would be to re-instate the MC with new directors but I was told it would be a difficult and drawn-out procedure to do. Thankfully the MC got its act together and got themselves de-listed and I did not have to worry about it.
 
I assume the problem is that the solicitor can't certify title to the bank.

Really there isn't enough information here to give any advice and only the OP's solicitor can advice.

Quite a few different factors come into this, how long the estate has been finished, the MUD act, whether the council accept that the estate is complete and have released the bond, whether the common areas are actually transferred ( and I don't think the residents can prevent this), whether there has been an EGM to hand over the management company to the residents, whether the service charges are being paid etc etc. Different councils also have different policy documents on when/if residents in a finished estate can seek to have the council take it in charge. These are often available on the individual council websites. A huge amount of work/research needs to go into looking at the title to any such estate and anonymous posters are not going to be able to help, even with the best will in the world.
 
Hi,

Thank you for your replies.
The estate has been finished since 2010- it is seen as an unfinished estate as 4 houses are not fully finished. The bond expired at the start of July 2012. The developer started transferring the common areas but no EGM has happened. The developer paid for all the service charges but grass cutting is on the onus of the residents. My solictor is no longer replying to my emails- it feels like i am stalking him with all my queries. Kerry County Council will only take over an estate if a management company is set up - at present they are taken over 2005 estates in Kerry.
House is nice property in a nice area and I got a good deal on it- cheaper than alot of house in Killarney so i am anxious to get it.
 
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