Builder bankrupt, managment company not set up yet.

theblueirish

Hi All,
Looking for a bit of advice if possible.
I live in an estate of approx 40 houses which people have started moving into approx three years ago and the last few maybe a year ago.
Last year the estate agent appoached us about taking over the managment company telling us that the site was now complete and that utillities had been handed over to the council. We agreed that night who would act on behalf of us and that we would let the estate agent act as our managment agent.
The following day we discovered that the utillities had not been handed over to the council and I was told that it would be very unlikely they would be handed over in the near future as there were alot of irregularities.
We informed the estate agent that we would not be taking on the responsiblities of the managment company. since then we have heard nothing from them.

In the last year the builder has gone bankrupt, the company that built the houses hasn't but has stopped trading. The pumping station at the front of the site is now full and has started comming back up the road drains. The company that emptied it previously are owed nine thousand euro from the builder so they won't empty it.

I have reported it to the council approx 10 times the last three months but haven't got a reply, the closest thing to a reply I have had is being told it was passed enviromental health.

The advice I am looking for is this:
Where do we stand as residents?
Is there anything we can do to get the council to adopt the site?
If we go ahead and take over the managment company are we liable for the debt already out standing?
Would we be better of forming a new company and let the one the builder formed remain dormant?

Any thoughts greatly appreciated.

Regards

Theblueirish

Paulw

Realistically - you need proper professional legal advice, rather than that views of people on boards.

You need a solicitor who is familiar with planning and residential issues.

Go get legal advice.

RATM

PaulW is right, you need proper legal advice. www.flac.ie might be able to help you

Victor

You might consider forming a residents / owners association as a limited company and hire a solicitor with that.

Two things:

1. What is the sewerage situation? Is it a communal septic tank arrangement or a simple storage tank?

2. You mention houses. Is there any need for a management company other than possibly to deal with the sewerage?

theblueirish

Thanks for the replies,
It was a stipulation of the planning that a managment company must be formed to take control of the site, grass cutting, insurance etc.

Alot of the houses are rented (some by undesirables) we do not know who the landlords are, the estate agent wont tell us.

I'm not 100% on the working of the sewage system, I know it has four large manhole covers and has been refered to as a pumping station.

Thanks again for the input, everything taken on board.
I will leave this up for a few days before I do anything.

Kind regards

Theblueirish

waffleman

I know of an estate having similar problems. They are currently having meetings with the council to try and resolve.

In the mean time the sewerage got pretty bad on a few occasions and was overflowing and lying at the bottom of the estate. Until they get it sorted they have been paying a farmer to come in the middle of the night and empty the sewerage*

I'm not recommending this or anything - your sewerage pump situation might be very different to theirs

*allegedly

Victor

theblueirish wrote: »

Alot of the houses are rented (some by undesirables) we do not know who the landlords are, the estate agent wont tell us.

The PRTB may be able to help. www.prtb.ie

thebiglad

Any sort of legal action is going to take time - whilst that is going on your sewerage will keep leaking and what are the chances the builder has any intention of paying €9,000 of a back log and the new costs to have it cleared out.

If you signed up to a Management company lease, you will be liable for certain costs as a collective - that agreement would have been given to you when you signed for the house with the solicitor - can you get a copy - be a simpler option than pointless legal action.

If you are liable long-term to manage the emptying or maintenance of sewerage then perhaps you form a residents committee and deal with it now - you will have to ascertain the cost and make a collection from all of the houses (of course those renting may not pay but refer you to their landlord).

I live in a finished estate with a Management Company (which we have taken control of) but we still have issues with rented properties where the landlord will not pay the estate fees and tenant could care less.

athtrasna

Don't builders have to lodge a bond with the council on commencement of a development and only get it back when the development is completed satisfactorily? It can take years for the bond to be returned, to allow for cases precisely like this?