These four words best describe
the phenomenon of apartment ownership in Ireland
today.
Of the 80,000 housing units completed
throughout Ireland in 2005, over 18,000 (22.4%)
were in apartment complexes and it is estimated
that over 500,000 people now live in such developments.*
It is clear that there is a widespread
"understanding deficit" among owners of
apartments, and houses in privately managed developments,
in relation to the structure of such developments
and the duties and rights of the various parties
- the developer, the owners and the residents.
This "understanding deficit" appears to
be increasing rather than decreasing and is directly
leading to situations where many apartment developments
are on the road to crisis and disaster, with little
or no input from the owners, a completely inadequate
or non-existent Sinking Fund and a general atmosphere
of abandonment.
There are many reasons why this
set of circumstances exists, among which are:
-
Lack of regulation within
the industry.
-
Lack of information
about Service Charges and how they’re
calculated.
-
Refusal or delay by
the developer in handing over the development
to the owners.
-
Lack of transparency
of Managing Agents.
-
No information provided
to owners when buying an apartment.
-
Confusion over the
different roles of the Management Company and
Managing Agent.
-
Lack of long-term vision
by owners.
-
Lack of information
on the role and responsibility of Management
Company directors.
The
underlying problem which is the cornerstone
of these difficulties is that there is no information
available to owners, and potential owners, in relation
to the inner workings and legal structures of multi-unit
developments.
A
new book has been written by Robert Gogan - "The
Essential Guide to Apartment Living in Ireland"
- and self published by his own company, MI Publications,
which aims to solve the problem of the ‘understanding
deficit’ by explaining in a clear and down-to-earth
manner the structure of multi-unit developments.
It also gives useful practical advice on how to
tackle the many issues which arise for residents
in such developments, such as:
An explanation of the various
entities involved in the multi-unit development
structure.
The important factors to check
before buying an apartment.
What to check before hiring a
Managing Agent.
The best ways to deal with anti-social
neighbours.
The issues to be considered before
becoming a director of the Management Company.
How to deal with the developer
and/or builder.
How to deal with the poor management
of the development.
What an owner should expect in
return for his/her Service Charges.
*The Law Reform
Commission Consultation Paper on Multi-Unit Developments
(LRC CP 42-2006)
01
January 2008
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