Multi-Unit Developments Act 2011
Recent changes to legislation under the new Multi-UnitDevelopments Act 2011 will affect residential and mixed property developments.
The Multi-Unit Developments Act 2011 whichwas signed into law in January of this year imposes new obligations on property management
companies and Developers.
This legislation provides a statutoryframework 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 theact?
- Requirementto establish an Owner Management Company (“OMC”) for all Multi-Unit Development
(“MUD”) at the expense of the developer.
- Strictconditions for the sale of units and obligation for developers to transfer ownershipof common areas to OMC’s – The common areas must be transferred within6 months of 1st April 2011.
- NewRegulations for Mixed Use Multi-Unit Developments.
- Automaticmembership of the OMC.
- Onevote is attached to each residential unit.
- Requirementto hold annual meetings and prepare annual reports to members – The format of
these annual reports are defined in the Act.
- Establishmentof a scheme of annual service charges & expenditure categories.
- Establishmentof a sinking fund within 18 months of enactment of the Act.
- Makinghouse rules
- Disputeresolution, mediation & rehabilitation of multi-unit development
- Restorationof struck off OMC’s to Register of Companies within 6 years of strike off
What must the Management Company Do?
The Directors of the PropertyManagement 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
- Thecommon areas must be transferred to the Management Company by 1st
- Amendthe Memorandum and Articles of Association to provide for the new provisions of
- Theunit owners are automatically registered as members of the company and
membership certificates must be issued to each member.
- Establishprocedures 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 yourManagement Company in more detail.
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