Dermot Ahern (Louth, Fianna Fail)

This Bill seeks to address shortcomings in current arrangements concerning the transfer of control of owners' management companies to unit owners. One of the shortcomings that has come to light in recent discussions with stakeholders is the lack of any detailed contract between the developer and the owners' management company which would set out the developer's obligations to the company in a manner which would enable it to enforce discharge of these obligations. The purpose of amendment No. 10 is to ensure that prior to the sale of the first unit of a development, the developer and the owners' management company must enter into a contract setting out the rights and responsibilities each has to the other. I envisage that this contract will include a commitment by the developer to complete the development in accordance with the planning and building control codes and a commitment to attend to any other snagging matters. The existence of such a contract would also provide protection for any purchaser of residential units within a multi-unit development because any person considering purchasing such a unit or his or her solicitor would have the opportunity and the possibility of examining commitments regarding completion which the developer has committed to in the contract. Amendment No. 8 is a drafting amendment arising from the insertion of the new paragraph (c).

On Committee Stage I indicated I would table an amendment on Report Stage to provide that a purchaser or unit owner must provide contact details to the owners' management company. Amendment No. 24 inserts a new subsection in section 7 which provides that a unit owner must supply contact details to the owners' management company and must notify the company of any changes in those details.

Amendment No. 11, tabled by the Labour Party Senators, deals with the same issue, but we believe section 3 is not the correct section in which to make a change. I cannot accept amendment No. 18, tabled by the Labour Party Senators. It seeks to restrict unreasonably the right of an apartment owner to sell his or her property unless the purchaser gives an undertaking to supply contact details. Such a restriction would be likely to infringe the property rights of an apartment owner.