Peter Mathews (Dublin South, Fine Gael)
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Question 255: To ask the Minister for Justice and Equality his plans to amend the Multi-Unit Developments Act to ensure that purchasers are aware of any shortfall in the finances of the management company and any future outlay to rectify building deficits; and if he will make a statement on the matter. [13543/11]

Alan Shatter (Dublin South, Fine Gael)
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Section 17 of the Multi-Unit Developments Act 2009 imposes specific reporting obligations on owners' management companies. Subsection (1) requires such a company to prepare an annual report and to hold a meeting at least once a year to consider its contents, while subsection (2) specifies various matters to be included in that report. These include details of income and expenditure as well as assets and liabilities. The report must include specific details of the annual service charge and the basis on which it was calculated, and similar data in respect of sinking fund contributions.

It must also indicate the level of the sinking fund and provide details of any planned expenditure on refurbishment, improvement or maintenance of a non-recurring nature. The objective is to ensure increased transparency for apartment owners in the multi-unit development concerned and improved protection for intending purchasers. The Law Society's Standard Objections and Requisitions on Title already provides in the case of apartment sales that a vendor's solicitor must furnish a copy of the accounts of the owners' management company for the previous year, including details of any sinking fund and the level of the service charge. Moreover, on closing the sale, the vendor's solicitor must provide a receipt for the latest payment of the service charge.