I currently reside in a community of roughly 200 flats in Dublin’s northern region, built around two decades ago. Unfortunately, despite numerous attempts and investment to rectify, recurring water leakage has been a constant issue. Currently, the subject of management fees and repair costs for these leaks is under discussion among the residents.
Getting your advice on certain points would be extremely beneficial. Let’s delve into a few scenarios.
1. Should the burden of rectifying all leaks fall solely onto our Owners’ Management Company (OMC)?
2. If one buys a property with clear signs of mould due to leakage evident in the listing’s photographs, is it right to expect the OMC to bear the repair expenses of such leaks?
3. Consider a situation where a dishwasher or washing machine causes a leak into the flat beneath; should the owner of the malfunctioning appliance bear the responsibility of repair?
4. If the OMC is nominally responsible as per the lease, yet residents are averse to funding repair of others’ leaks, could we decide in a general meeting to make owners accountable for certain leaks, similar to a house scenario?
5. Can the OMC collate multiple claims to facilitate a broader claim from the block insurance, despite its steep price?
The responsibility of the OMC for fixing all leaks is not cut and dry, as it greatly hinges on the type of leak. If, for instance, a washing machine pipe bursts causing leakage, the repair of the vessel leading to fixing the leak is indeed the responsibility of the machine’s owner, and not the OMC’s.
However, the OMC becomes responsible when the leaked water navigates through areas shared communally, such as floors, walls, or ceilings. The OMC stands for the interests of all owners and hence, needs to have a building insurance policy in place. This ensures that the owners who’ve suffered losses (repairs needed due to damage caused by leakage) can lodge a claim for compensation.
The OMC’s obligation is to maintain this insurance policy. Although owners are accountable for any work needed within their individual flats, some OMCs may choose to step in internally, though it’s not mandatory. The OMC, however, is required to upkeep common areas. Therefore, if any shared spaces like corridors suffer damage, it’s the OMC’s duty to schedule the necessary repairs.
To address your secondary query, we would require more details. The origin of mould in a flat could be attributed to environmental factors inside the flat rather than a water leak. The structural issues of the building itself might sometimes foster mould growth. The presence of water leaks, which necessitates immediate discovery and resolution, isn’t always the cause. The Owners Management Company (OMC), the owner of these buildings, holds the legal mandate to undertake the buildings’ maintenance and repairs and it is their responsibility to cover the costs of structural repairs. Nonetheless, the OMC’s duty does not encompass refurbishment efforts inside individual flats. Normally, the insurance for the building covers water leaks while structural anomalies are not included.
The lease contract ordains that the OMC owns and manages the repairs and upkeep of the buildings. The said contract can be altered under specific conditions. All owners can mutually agree on changing the lease, followed by signing a deed of variation. Another possibility involves the OMC securing an ordinary resolution’s approval in a company meeting for lease alterations and then pursuing an order from the Circuit Court to execute the amendments.
While owners can come to an agreement during gatherings, please note that these may lack legal enforceability. Furthermore, if the OMC lacks funds to conduct maintenance, this situation doesn’t absolve them of their responsibility.
Given the OMC has to make an insurance claim, it is recommended to appoint a loss assessor to lobby for the OMC’s interests. The loss assessor is adept at evaluating the claim and negotiating with insurance providers to maximize the OMC’s benefits. The assessor’s remuneration usually takes the form of a percentage of the settlement amount, meaning the higher the settlement, the higher their earnings. You can also seek their advice on bundling multiple claims.
Aisling Keenan, a real estate management agent and consultant, and an associate member of the Society of Chartered Surveyors Ireland penned this column.
This column functions as a service for readers, offering general information. It isn’t intended as a complete reliance guide for readers, and before taking any action based on this content, they should seek expert or specialised advice.