PROPERTY CLINIC: Q The Multi-Unit Developments Act, as you probably know, was signed into Law in January 2011, and September 30th, 2011 was the date set for developers to finally hand over ownership of all common areas of apartment complexes to owners. The management company for the complex (31 units) in which I own an apartment, to date has not complied with the conditions of the legislation. There has been no communication from the company despite its being informed of its obligations.
This is a matter of serious concern. Many of the owners are prepared to establish an owners’ management company but are not certain of the way forward as down the line they could face some unforeseen difficulties as regards possible existing issues or liabilities of which they are not aware and which have not been brought to their attention. There is a strong view that the management company should meet its obligations under the legislation. Your advice and guidance as to the way forward would be much appreciated.
ASections 3,4 and 5 of the Multi-Units Development Act 2011 require the legal ownership (reversionary interest) of the common areas of a multi-unit development to be legally transferred to the relevant owners' management company no later than September 30th, 2011.
The transfer of the reversionary interest transfers control of the estate to the Owners’ Management Company (OMC) and ultimately the unit owners. Owners’ Management Companies are controlled by the members/shareholders who can exercise their right to vote in accordance with the rules of the company (in statute law and the memorandum and articles of association). Rules regarding voting were also amended in the MUDs Act and, with some exceptions, most multi-unit developments operate on one vote per unit.
In order for full legal and beneficial control to pass to the Owners’ Management Company, the conveyance of the common areas must first be made to the OMC and the executive of the OMC must change (directors of the OMC should be elected at a general meeting of unit owners, the new directors being members of the OMC and unit owners themselves).
In the past year, a number of circumstances have prevented such transfers, including:
Complications regarding the separation of title of common areas and unsold units.
Receiverships, liquidations and bankruptcies of development companies and developers
Apathy of some developers
Apathy of some unit owners within a MUD
Other more complex legal difficulties regarding tenure of land
While any owner of a unit within a MUD can take an action in the Circuit Court under the MUDs Act to oblige the conveyance of the reversionary interest, this may not be the most cost- effective and beneficial route to take.
The importance of an Owners’ Management Company having good title, being compliant and being well funded should not be understated. It is fundamental to the protection of the enjoyment and value of the property for all owners that the OMC be operated in a transparent and compliant manner, and this is the spirit of the Multi-Units Developments Act 2011.
Where the conveyance has not taken place, a number of steps should be taken before legal proceedings are issued:
Firstly, owners should get organised, either by election of directors or the establishment of a committee to engage with the developer.
Secondly, the OMC will need to engage legal representation to act on their behalf in the transfer and receipt of all title documentation from the developer.
Thirdly, the owners should satisfy themselves that what they are taking control and ownership of is satisfactory.
Finally, but most importantly, their advisors, including legal representatives, must be paid, so the owners will need the OMC to be in funds.
The Multi-Units Developments Act does not have a relevant regulatory body to ensure compliance or deal with complaints, nor does it make provision for fines or penalties for non-compliance. It does, however, provide a rule-book for Owners’ Management Companies, the conveyance of common areas and the process, through the courts and mediation, for non-compliance, disputes and redress.
Owners in multi- unit developments, where the reversionary interest has not been conveyed should contact the relevant directors or management agent (if any) to ascertain the status. If there is no action being taken, owners should get organised in an effort to begin the process. It should be borne in mind that the process of conveying the common areas with willing engagement from all concerned is complex and can be protracted.
** Paul Mooney is a chartered surveyor and member of the Society of Chartered Surveyors Ireland. scsi.ie
Q I’m keen to make my house energy efficient and am considering buying some solar panels for my roof – is this a good idea and will I save much on my energy bill?
AFitting a solar hot water heating system is an excellent way of making your house more energy efficient as it reduces the amount of fuel used to heat hot water.
In the summer months, a properly designed and installed system will provide all of a household’s hot water requirements; it even boosts the water temperature during cloudy days in winter.
A solar system with 6sq m of panels, to suit a house with four to five occupants, will cost from €5,000 to €7,000, depending on the specification and cost of installation. As a rule of thumb, one square metre of solar panel on your roof gives the equivalent of more than 100 litres of oil in free solar energy per year, so a typical system as outlined could save in the region of €600 per year in heating costs.
The higher your hot water usage, the more beneficial a solar hot water system will be, as more “free” energy will be used (source SEAI).
Fitting solar panels is normally exempt from requiring planning permission, subject to certain conditions, but fitting them to a protected structure (formerly known as a listed building) will require permission.
A number of factors have to be considered before fitting a solar water heating system. Firstly, take care when choosing your supplier and installer. The installation should be carried out by an experienced installer and the system should have a recognised quality assurance label. If in doubt, the Sustainable Energy Authority of Ireland's website ( SEAI.ie) has a list of approved installers and approved systems.
Panels should be sited on an area of roof not overshadowed by trees or other buildings; fitting panels facing south at a pitch of 45 degrees will achieve maximum efficiency. (Systems will still operate well on roofs with a 30-60 degree pitch and facing roughly southeast to southwest although there is a slight drop in performance. )
Many types of panel systems are available and most people choose between a flat plate solar collector or an evacuated tube system. Flat plate collectors fit on or into the roof and are generally considered more attractive than the tube-type collectors but tube-type collectors are lighter and generally more energy efficient due to the larger surface area of the tubes in a given panel area.
A new hot water cylinder will normally be part of the system. This would preferably be sited in the same location as the existing cylinder to reduce the amount of work to the existing heating pipework but these cylinders are normally a lot taller than existing cylinders and alterations to the hot press or utility room may be required to suit the new cylinder and control unit. A range of other measures is available to reduce energy consumption in dwellings and professional advice should be sought in relation to which of these measures will best suit your property.
** Freddie Millar is a chartered building surveyor and member of the Society of Chartered Surveyors Ireland scsi.ie
