Management fees for apartment

MaudL

Hi,

When you purchase an apartment, when and how do you have to pay the management fees? The whole amount right away or monthly?
Is it prorated for the year, so if you bought in October you'd pay 3 months worth?

Thanks!

Paulw

What does your contract say?

In many places, monthly installments are permitted, but that is at the discretion of the management company. Normally your fees are due on the 1st day of the company year (in many it's 1st Jan). All these things should be clarified by your solicitor.

As for buying a property part way through the year, what did your solicitor say about the management fees?

MaudL

Paulw wrote: »

What does your contract say?

In many places, monthly installments are permitted, but that is at the discretion of the management company. Normally your fees are due on the 1st day of the company year (in many it's 1st Jan). All these things should be clarified by your solicitor.

As for buying a property part way through the year, what did your solicitor say about the management fees?

I don't have a contract, or an apartment for that matter, I'm still looking
I'm just trying to gauge the totality of upfront costs when I make the purchase.

4ensic15

Usually, on purchase of a second hand apartment there is an apportionment. Your solicitor will insist on a receipt for the management fees. If the fees are up to date the vendor will have paid into the future. If you buy half way through the year you will have to pay half the fee as a refund to the vendor. You should find out before making an offer how management fees are handled in the particular development.

Suaimhneach

I saw an apartment today in a small complex, where the annual fees are 2,200 euro per year. The estate agent said that this covers elevator maintenance, fire insurance, car park stuff. He said because it was a small complex the fees were high. I was disappointed to see that the hall ways were dirty though - you would think with fees that high regular cleaning would be required.

NinjaTruncs

MaudL wrote: »

Hi,

When you purchase an apartment, when and how do you have to pay the management fees? The whole amount right away or monthly?
Is it prorated for the year, so if you bought in October you'd pay 3 months worth?

Thanks!

When the owner sells they will be made pay any outstanding fees, including any arrears. You will then need to reimburse them for the remaining time for this year. Just note that the year doesn't automatically end in December. In my case fees were due in June, so if you bought from someone in NY development you'd be paying the current owners for almost 9 months of fees.

Some manahlgment companies allow you to pay monthly however this option won't be open to you until the next set of fees are due as this year will be up to date.

Gumbo

Or ally, and it's been the case when I sold/bought before. The buyer pays pro-rata. If you bought on the 1st October and the original owner had the year paid up then you pay your balance back to them by way of cheque to your solicitor when signing. Same for the property tax.

Also beware that some management fees may not be Jan-Dec, ours is July - July for example.