I live in a development of about 200 apartments in north Dublin which was constructed about 20 years ago. The development has experienced many leaks over the years. Unfortunately, while a lot of money has been spent on this issue, leaks still continue.
At present, residents are in discussions regarding management fees and payment for leak repairs. To that effect, I would really appreciate your advice on some aspects.
1. Is it solely the expectation that our Owners’ Management Company (OMC) fix all leaks?
2. If someone purchases a property which clearly has mould from leaks in the property listing photos, can they expect the OMC to pay for the repair of said leaks?
3. If a dishwasher/washing machine leaks into the apartment below, is it not the responsibility of the owner with the leaking appliance to fix same?
4. If the lease says the OMC is responsible but people do not wish to pay for other’s leaks, can we vote at an egm that owners must be responsible for certain leaks as in a house?
5. Can the OMC put in a number of claims together to assist them claiming from the block insurance, which is very costly?
It is not solely the expectation that your OMC fix all leaks, as it depends on the leak. If a washing machine pipe fails and leaks, then to fix the leak will mean fixing the washing machine. This will not be the responsibility of the OMC, it is the responsibility of the owner of the washing machine.
As the leaking water travels through the common areas, ie floors, walls, ceilings, it then becomes the responsibility of the OMC. The OMC represents all owners’ interests and will have a buildings insurance policy in place so that owners who have suffered a loss (ie, they have to carry out repairs after the leak caused damage to their apartment) can claim on the policy to be compensated.
The responsibility of the OMC is to have the insurance policy in place. Owners themselves are responsible for all works inside their apartments. Some OMCs may choose to carry out works inside apartments but they are not obliged to do so. The OMC is obliged to maintain the common areas, so if there is damage to the common area corridors, the OMC must arrange to have repairs carried out there.
Some additional information would be required in relation to your second query. Mould in an apartment may not be caused by a leak. Mould is more commonly caused by the living conditions in the apartment and sometimes it can be caused by an issue with the structure. A water leak is an escape of water that must be found and fixed. The OMC owns the buildings and is legally responsible for the maintenance and repair of the buildings and, in this regard, the OMC is expected to pay for repairs to the structure of the building. This does not extend to redecoration works inside apartments. Water leaks are normally covered by the buildings insurance whereas structural defects are not.
The lease agreement will stipulate that the OMC owns the buildings, and the OMC is responsible for the maintenance and repair of the buildings. The lease agreement can be amended in certain circumstances. Owners may agree unanimously to vary the lease, and all owners must then sign a deed of variation. Another way in which the lease can be amended is for the OMC to get approval by ordinary resolution at a company meeting to vary the lease and then apply to the Circuit Court for an order to amend the lease.
Agreements at meetings can be made among owners, however, they may not be legally binding. If the OMC does not have the money to carry out works, this does not absolve the OMC of its responsibility to maintain the buildings.
When the OMC is making a claim on the insurance policy, it is advisable that a loss assessor is appointed to represent the OMC in the claim. The loss assessor is qualified to calculate the claim and negotiate with insurers for the best outcome for the OMC. The loss assessor’s fees are normally a percentage of the settlement figure and so it follows that the higher the settlement figure, the higher the fee paid to them. The loss assessor will advise on whether or not a number of claims can be made together.
Aisling Keenan is a property managing agent and consultant and an associate member of the Society of Chartered Surveyors Ireland
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