Multi-Unit Developments Act 2011
Recent changes to legislation under the new Multi-Unit
Developments Act 2011 will affect residential and mixed property developments.
The Multi-Unit Developments Act 2011 which
was signed into law in January of this year imposes new obligations on property management
companies and Developers.
This legislation provides a statutory
framework for the operation and governance of multi-unit developments and the
duties and obligations of developers have been clearly defined. The rights and
obligations of members have been established and a framework for dispute
resolution is provided for in the Act.
What are the main provisions of the
to establish an Owner Management Company (“OMC”) for all Multi-Unit Development
(“MUD”) at the expense of the developer.
conditions for the sale of units and obligation for developers to transfer ownership
of common areas to OMC’s – The common areas must be transferred within
6 months of 1st April 2011.
Regulations for Mixed Use Multi-Unit Developments.
membership of the OMC.
vote is attached to each residential unit.
to hold annual meetings and prepare annual reports to members – The format of
these annual reports are defined in the Act.
of a scheme of annual service charges & expenditure categories.
of a sinking fund within 18 months of enactment of the Act.
resolution, mediation & rehabilitation of multi-unit development
of struck off OMC’s to Register of Companies within 6 years of strike off
What must the Management Company Do?
The Directors of the Property
Management Company are required to ensure that the Management Company complies
with all legislation that applies to the Company. The main requirements that
must be complied with under the Act are
common areas must be transferred to the Management Company by 1st
the Memorandum and Articles of Association to provide for the new provisions of
unit owners are automatically registered as members of the company and
membership certificates must be issued to each member.
procedures for setting the Annual Service Charge and contribution to the
Please contact Brian Dignam to arrange a meeting to discuss how the new Act affects your
Management Company in more detail.
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