Owners’ Management Companies
With more and more of us living in larger developments the way and how people in Ireland are living is changing. Most of these developments will fall under the jurisdiction of the Multi-Unit Developments Act 2011 (MUD Act).
If you have purchased a property of this type or rent one, you will know that the ownership of the common areas of these development’s rests in a company, referred to as an Owners’ Management Company (OMC). These companies are registered with the Companies Registration Office and have the same legal and filing requirements as any other company.
The purpose of the company is not only to hold this ownership, but to also manage and maintain the common areas of the development. The MUD Act defines what common areas are. Common areas may include such items as external walls, foundations, roofs, entrance halls, landings, lifts, access roads, footpaths, cisterns, tanks, and pipes. Just to name a few. What is included should be included in the head lease agreement signed when you purchased your unit.
To manage and maintain the common areas the OMC will charge our service charges to members to cover the costs incurred. This will be done on a not-for-profit basis.
The typical structure of one of these companies is that of a company limited by guarantee i.e., not having a share capital. Once you purchase a unit in the development you will automatically become a member of the company. The members will appoint directors to run the company on their behalf.
Over the course of these posts, we will look at several key areas of these Owners’ Management Companies, including:
-Multi-Unit Developments Act, 2011 (MUD Act)
-MUD Act Annual Report
-Service Charges and Service Charge Budget
-Sinking (Building) Investment Fund
-Once Off Levies
If you are a tenant, owner or director of one of these companies there are many useful websites out there to assist you, such as The Housing Agency (www.housingagency.ie), Competition and Consumer Protection Commission (www.ccpc.ie), Cluid Housing (www.cluid.ie) and The Chartered Surveyors (www.scsi.ie). All of whom have interest reports on commentary on this area.