Written answers

Tuesday, 28 January 2014

Department of Justice and Equality

Housing Management Companies

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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577. To ask the Minister for Justice and Equality if the attention of his Department has been drawn to any anomalies in the Multi Unit Development Act 2011; and if he will make a statement on the matter. [3636/14]

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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As the Deputy will appreciate, I cannot comment on individual cases or provide an interpretation of law in response to a parliamentary question. However, by way of general information, I can say that the primary purpose of the Multi-Unit Developments Act 2011 is to reform the law relating to the ownership and management of common areas of multi-unit developments and to facilitate the fair, efficient and effective management of owners' management companies (OMCs) which are the bodies established for the management of such areas.

Section 5 of the Act contains provisions which deal with completed or substantially completed multi-unit developments in which the common areas have not been transferred to the OMCs. They oblige the developer to transfer ownership of the relevant parts of the common areas to the relevant OMC within 6 months of the coming into operation of the section, i.e. before 1 October 2011. Subsection (2) defines "substantially completed" as developments in which sales of not less than 80% of the residential units have been closed.

Section 24 deals with the resolution of disputes and it provides that a person may apply to court for an order to enforce any right conferred or obligation imposed by the Act. The court, if satisfied that a right has been infringed or an obligation has not been discharged, may make such remedial order as it deems appropriate in the circumstances with a view to ensuring the effective enforcement of the right or the effective discharge of the obligation in respect of the development concerned.

Statutory provisions regarding the liabilities and responsibilities of companies in liquidation, including their debts and any judgments registered against them, are set out in the Companies Acts rather than the Multi-Unit Developments Act 2011. However, since title to a residential unit in a multi-unit development normally comprises both ownership of the unit concerned and a corresponding share of ownership of the development's common areas, the validity of registration of a judgment mortgage over such common areas is a matter on which, taking account of the owners' title documents, the OMC may wish to obtain legal advice.

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