Written answers
Tuesday, 10 October 2023
Department of Justice and Equality
Property Management Companies
John Lahart (Dublin South West, Fianna Fail)
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336. To ask the Tánaiste and Minister for Justice and Equality if it is legal for management companies, which takes ownership of a substantial amount of apartments in an apartment complex that, that a management company then has the majority vote when it comes to increasing the management fee on the owner/occupiers in the remaining part of the apartment complex; and if she will make a statement on the matter. [44115/23]
Helen McEntee (Meath East, Fine Gael)
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The Multi-Unit Developments Act 2011 (MUDs Act), reformed the law relating to the ownership and management of common areas of multi-unit developments, and aims to facilitate the fair, efficient and effective management of Owner Management Companies (OMCs).
The MUDs Act includes provisions relating to:
- the voting rights of apartment owners in decisions taken by the OMC;
- the power of a court to revise those voting rights, if satisfied that this would be ‘in the interests of justice’; and
- the setting of the annual service charge payable by apartment owners in a MUD
Despite the general rule stated above under point 1), the MUDs Act also provides for exceptions in the interests of fairness. Under section 25(1), ‘any member of [the] owners’ management company’ may apply to the Circuit Court for a court order to alter the voting rights of members in the OMC.
‘that the structure of the voting rights of members in an owners’ management company is not established on a fair and equitable basis, ...[and ] that it is necessary in the interests of justice to do so ...’ . The Act also provides for mediation in such a dispute.
Under section 18 of the MUDs Act, the proposed annual service charge has to be approved by the OMC members at a general meeting. The proposed service charge amount can be amended by a vote of 60 per cent of those present and voting at the meeting. Where the estimated service charge for the coming year is disapproved by at least 75% of those present and voting, the proposed service charge will not be levied, and the previous year’s charge will continue to apply until a new service charge for the coming year is approved.
In relation to annual service charges, the owner of each unit in a multi-unit development is obliged to pay all service charges levied.
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