Catherine Murphy (Kildare North, Independent)
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To ask the Minister for Justice and Equality if he will clarify under existing legislation the precise circumstances under which a management company may be formed in multi-unit developments; and if he will make a statement on the matter. [55636/12]

Alan Shatter (Dublin South, Fine Gael)
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The position is that section 3 of the Multi-Unit Development Act 2011, which came into effect on 1 April 2011, provides that a residential unit in a new multi-unit development, i.e. a development in which no such unit had been sold prior to 1 April 2011, may not be sold unless an owners' management company (OMC) has been established at the expense of the developer concerned and ownership of the relevant parts of the common areas has been transferred to the OMC.

Under the 2011 Act, an OMC is a company established under the Companies Acts for the purpose of becoming the owner of the common areas of a multi-unit development and for managing and maintaining such areas. The membership of the OMC comprises the owners of residential units in the development.

While section 3 of the 2011 Act does not apply to multi-unit developments in which residential units had been sold prior to 1 April 2011, the factual position is that the most of these developments have OMCs in place and they are subject to the Act's provisions in relation to the holding of annual meetings, reporting requirements, the fixing of annual charges and the establishment of a sinking fund.