I’ve at last negotiated a purchase agreement for the flat in Galway I’ve had my eye on. However, I’m still in the dark regarding the property management firm, barring the yearly costs. Should it fall to me or my solicitor to conduct a probe into the organisation, such as: identifying the agency, uncovering the board members, determining the sinking fund reserve, verifying the accounts, and so forth? If the duty lies with my solicitor, should they alert me about any potential issues? I fear that if any complexities are disclosed in legal or technical terminology, I might overlook something crucial and repent afterwards.
A concern I have stems from the estate agent revealing that, just recently, all proprietors forked out additional cash to arrange a gate for the property complex – a cost that I imagined would be covered by the sinking fund. I’m uncertain whether this is the norm or if it’s a cause for concern.
When purchasing your flat, you’ll have enlisted a solicitor to act on your behalf. Among their roles is to conduct thorough examinations on the property’s history.
These examinations encompass the requisition on title. When purchasing a flat, this is more commonly referred to as the “MUD Act inquiries”. This inquiry list contains approximately 28 questions, designed to provide data on all the points you’ve raised in your question, and more. You should ask your solicitor for a copy of the replies to the MUD Act queries, allowing you ample time to scrutinise them before finalising the purchase. You may likely have subsequent inquiries when you’ve perused the document – these should then be forwarded to your solicitor to obtain added information and ensure you’re adequately informed.
Be cautious during an informal chat with a real estate agent concerning monetary transactions in the OMC.
Typically, every detail regarding the activities of the owners’ management company (OMC) should be disclosed to you. However, in instances where issues are still active and unresolved, the OMC may not be capable of providing information before finalising your purchase. In such circumstances, you’ll only gain further insight into the matters once you become an owner and a member of the management company.
Certain amenities exist for you to undertake your own background inspections, independently from your council’s efforts. It’s likely that the firm supervising the maintenance of your premises will be registered with the Companies Registration Office (CRO). You can conduct an investigation of this firm and its adherence to regulations by visiting the website of the CRO. A minor expense enables you to access information such as who the firm’s directors are, their number, whether the company is compliant and up-to-date with filings, and an option to acquire the latest financial records.
Be sceptical of any impromptu discussions with a property agent regarding monetary dealings within the OMC. Off-hand remarks about specific financial stats of an OMC are usually misguided and not substantiated. To cite an example, it’s a standard protocol in an OMC that owners might elect to undergo enhancements such as gate installations. In these instances, the necessary finance arrangements are sorted. The funding could be sourced from the sinking fund, but it would be funded by the individual contributions to the sinking fund from the owners. Typically, owners are required to contribute to the sinking fund for said projects to proceed.
The required sinking fund contributions from owners correlate directly to the quantity of work the OMC chooses to undertake. Consequently, more conducted works will result in better property value for all owners. In view of this, don’t be apprehensive; it might in fact be an encouraging factor for purchasing a flat in this development where the OMC continues to improve and enhance the property values.
Aisling Keenan is a recognized associate of the Society of Chartered Surveyors Ireland and a specialist in property management and consultancy.