Common Areas Fees

Discussion in 'Management companies, apartments, etc.' started by Confused83, 31 Oct 2018.

  1. Confused83

    Confused83 Registered User

    Posts:
    4
    Hi I am looking for some advice on regards outstanding fees ownership and common areas.

    Complicated situation joint ownership and outstanding fees.

    Common areas not transfered until 10 yrs after sale. Legal dispute ongoing with developer by estate.

    Lease states developer responsible to maintain services until fully vested into management company.

    Mc has had no AGM for approx 6 yrs fees just issued by paper no budget produced or voted on by owners and no accounts shared.

    Does the go against the mud act and are these fees recoverable by the MC
     
  2. Zenith63

    Zenith63 Frequent Poster

    Posts:
    138
    Having gone through taking an OMC from the developer and then reclaiming the common areas in recent years, it's all a painful enough experience and there seems to be little built up knowledge in the legal sector, due to how (relatively) recent the MUD Act is.

    I assume the development has been run by an OMC since it was completed, but the Directors of the company were the Developers so the members had no input?
    Have the members taken control of the OMC yet?
    Do you have previous accounts from the OMC?
    Have the Common Areas been transferred to the OMC yet?

    While it may be possible to pursue the Directors for mismanaging the OMC, once you take control of it you may decide that cost of doing so would not be worth it, and it might save you all a lot of time/heartache and potentially funds to just start running it the way it should have been and move forward...
     
  3. lantus

    lantus Frequent Poster

    Posts:
    292
    So a builder can levy fees without need to hold an agm or use the omc to manage the development.

    The common area lease will / should outline the transfer requirements. This is a separate document to the property lease.

    The builder should transfer when 85% of the development is complete from memory based on mud act.