Management Company status ?

W

Westgolf

Registered User
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Hi everyone,

I own an investment property ( 3 bed terrace townhouse), As part of the purchase process I paid 400 euros "management fees" and the developers collected approx 18k in this manner.
Developer then passed all over to management company who tried to force extra charges on owners.
Am I right in thinking that the original contract is with the developer and the extra charges are not based on a legal contract

thanks
 
lots of posts on related matters on AAM. I recommend the very helpful Search functionality.

In your purchase contract, did it declare a share of the management company costs that you are responsible for?

Also I recommed reading about the difference between management companies and management agents. The management company represents the owners
 
The owners of the 48 properties within the development all paid the initial charges in order to complete their respective sales.The current bone of contention is that the developer has little to show for the 18k collected and people are unwilling to pay more to the management company appointed agents-- i.e. the agents who were appointed by the developer before he tried to unload.
The agents are taking the attitude that every job needing to be done will be a revenue generating excercise whereas the owners are wondering what the initial 18k was for.
- each property has 1 share in the management company.

- search facility - excellent resource

westgolf
 
Check who is on the management company. It is important to ensure that the property owners are in control.

Request the budget / accounts from the management agent to see where the money is going. You will read some interestong threads about management agents charging for work that the builder should have done or did do !

Get the owners together if possible. If you can identify an owner with an interest and time to monitor the development and the builder / management agent, everyone will save a lot of money.
 
The expenses of almost every development are ongoing. Public area lighting and insurance and ground maintenance are just two expense areas that apply to a development of any kind.

As suggested apply for a copy of the accounts but I have never heard of a management fee being a once off - by it's nature management is continuous.

Perhaps your solicitor at purchase didn't point this out to you - in which case I'd be giving them at least a piece of my mind!
 
Just to update things,

as suggested asked for copy of accounts to date and breakdown of where the initial contribution was spent.At first met a little resistance but later got an email with the first two years accounts attached.
Am presently going through same and have forwarded them on to a number of other owners who were in the same frame of mind.
Have also started to notice a change of attitude in dealings with agents office

Things are looking up ;)
 
But remember you are only liable for costs incurred since you assumed ownership. Any expenses before that is not your problem,
 
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