Hi all!
I am looking at buying an apartment built in the last two decades, which is in a small development (20-30 units?) without internal common areas or lifts (all apartments have their own entrance).
My solicitor has flagged the following items with regards to the OMC, but has not made a specific recommendation one way or the other:
To me, all of the above look like pretty serious red flags - but I'm not sure if I'm interpreting it correctly. Any thoughts and experience with the above?
I am looking at buying an apartment built in the last two decades, which is in a small development (20-30 units?) without internal common areas or lifts (all apartments have their own entrance).
My solicitor has flagged the following items with regards to the OMC, but has not made a specific recommendation one way or the other:
- Common areas have not been transferred to the OMC
- No sinking fund has been setup
- Around half the service charges could not be collected in the last year (and there seems to be over 100k of service charges not collected in total over the past years, half of which was impaired already). On top of that, from what I can tell from the audited financial reports, not all of the directors from the OMC are paying their service charges for their units (again, about half the expected funds from the directors were collected).
To me, all of the above look like pretty serious red flags - but I'm not sure if I'm interpreting it correctly. Any thoughts and experience with the above?
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