Service charges - one apartment unfinished

Z

zbor911

Registered User
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Hi,

I am trying to find an answer to this - but everything looks very vague. I tried MUD act, AON and this forum.

The situation we have is that our developer has one penthouse apartment in our apartment block that is not finished. Penthouse is watertight but plastering, tiling, kitchen and toilets were not finished. So, it can not be lived in until some money is invested.

Everything else in the apartment complex has been finished.

Developer is not paying service charges for this penthouse. Developer is paying service charges for other apartments he owns (those which are finished).

Should he be paying for this unfinished penthouse too? Anyone else in similar situation?

thanks a million
 
Hi,

It would be my belief that the developer should be paying the full service charges for this unit. We had a similar situation where the developer owned 3 penthouses and never decorated them. He left them idle during the Celtic Boom but he paid his service charges in full during these years. Fast forward a few years and he was then only delighted to be able to decorate them and rent them out. He stopped paying his service charges however the owner management company recouped the debt when he sold the 3 units.
I also think the MUD Act is clear on this too- see section 18.11-
" For the purposes of this section a developer or building contractor, as the case may be, shall be regarded to be the unit owner of a unit in a multi-unit development…. as from the day on which the first sale of a residential unit in the relevant part of the development is closed."

Hope that helps.
Ensure that the OMC is issuing invoices for the penthouse to the developer and if you have not issue them now going back the correct number of years.
 
Thanks a million.

That is my opinion too - just wanted to double check.

I guess our next step is to proceed with issuing invoices.
 
As walker states this is a finished building and therefore subject to service fees. The roof and attic if one are the property of the omc as is the external wall And any balcony. But check the lease for exact relationships.

So yes he needs to pay and the directors and agent if one should pile on the pressure.

The fact he hasn't done anything internally is not the omcs concern.
 
Hi,

for anyone having similar question in future. Our solicitor confirmed that service charges (and sinking fund costs) should be paid for unfinished apartments too by the owner (or by developer if he is owner). Invoices can be sent backdated maximum up to 6 years, but not before April 1st 2011 - when MUD act was enacted.

Hopefully this will help someone.

cheers
 
What the developer does with his unit is his own business. Once the building is there and most units in the estate sold he must pay service fees. Solicitors letter would be the best way forward.
 
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