EA says they can't provide details of the apartment management company until contract

0gac3yjefb5sv7

Currently sale agreed and want to enquire about the what's included in the mgmt fees and contact the management company directly.

Thanks

dubrov

The management company will only deal with the owner.
The owner should provide a copy of the latest accounts and current year's budget to you.

It should be provided long before contracts and certainly before you spend any money on solicitors etc.

0gac3yjefb5sv7

dubrov wrote: »

The management company will only deal with the owner.
The owner should provide a copy of the latest accounts and current year's budget to you.

It should be provided long before contracts and certainly before you spend any money on solicitors etc.

That's what I thought. It's a lazy EA again. Also mentioned that I could view the place next week...we are on lockdown ffs.

Chris_5339762

Wait, surely the solicitor should do due diligence on the management company and wouldn't they usually give you an idea of fees? And tell you if the management company is solvent through a search of company records?

dubrov

Chris_5339762 wrote: »

Wait, surely the solicitor should do due diligence on the management company and wouldn't they usually give you an idea of fees? And tell you if the management company is solvent through a search of company records?

Yes they should.
However you don't want to get as far as paying a solicitor only to find that the management fees are 10k a year. The least the seller can do is provide some basic details before it gets this far. If they are evasive it would be a warning for me.

paulpd

Can't you just get a copy of the accounts from the CRO or Vision net? The company name is normally fairly similar to the development name and the registered office is often the estate / management agents.

Sleeper12

Zoe Uneven Thundercloud wrote:

That's what I thought. It's a lazy EA again. Also mentioned that I could view the place next week...we are on lockdown ffs.

Lazy solicitor too to let it get this far

Gumbo

Zoe Uneven Thundercloud wrote: »

That's what I thought. It's a lazy EA again. Also mentioned that I could view the place next week...we are on lockdown ffs.

Why blame the EA?
I have a property in a managed estate and I an tell you now, I don’t have any copies of any of the accounts, AGM’s etc

Viewings have already been discussed and classed as allowable as housing is essential.
Same way the councils are working on social housing projects and moving people out of emergency accommodation during the “lockdown”.

0gac3yjefb5sv7

Gumbo wrote: »

Why blame the EA?
I have a property in a managed estate and I an tell you now, I don’t have any copies of any of the accounts, AGM’s etc

Viewings have already been discussed and classed as allowable as housing is essential.
Same way the councils are working on social housing projects and moving people out of emergency accommodation during the “lockdown”.

They should expect a buyer to do due diligence before proceeding. I bet she didn't even check with the seller.

Gumbo

dubrov wrote: »

Yes they should.
However you don't want to get as far as paying a solicitor only to find that the management fees are 10k a year. The least the seller can do is provide some basic details before it gets this far. If they are evasive it would be a warning for me.

OP is not questioning the management fees, but what’s included.

dancingqueen

They should also ensure that all management fees are already paid on the property you are considering buying before your purchase goes through.

0gac3yjefb5sv7

Thanks for that. Should they be paid for an entire year or is there any rules on this?

For example if they are paid yearly in August and I was to move in July, I'd assume that's just tough luck?

dancingqueen

Zoe Uneven Thundercloud wrote: »

Thanks for that. Should they be paid for an entire year or is there any rules on this?

For example if they are paid yearly in August and I was to move in July, I'd assume that's just tough luck?

Well that depends on how it is billed and if there is an agreement with an owner to pay it in instalments or not. At least, it should be paid up to the date of the sale. If their financial year is from Apr-Mar, new bills would just be released. Maybe it's billed quarterly or half yearly - most residential developments are billed for the year. This is something the solicitor should be doing as part of sale agreement

pinkypinky

Usually pro-rata. I bought mine in a place where the company year begins in May. I paid from the month I bought in for the rest of the year.

dancingqueen

pinkypinky wrote: »

Usually pro-rata. I bought mine in a place where the company year begins in May. I paid from the month I bought in for the rest of the year.

Sorry I read your post wrong and the above is correct. You should be paying management fees from the date you become the owner.

0gac3yjefb5sv7

What happens if someone doesn't pay their fees? Does it go against their credit rating or are they taken to court?

dancingqueen

Zoe Uneven Thundercloud wrote: »

What happens if someone doesn't pay their fees? Does it go against their credit rating or are they taken to court?

Every owners management company is different and will decide on court proceedings between the directors of the management company which is usually 2 owners of properties within the development.

I have seen some taken to court for years of unpaid fees, judgments on their mortgages is the usual route. If the seller has substantial arrears, your solicitor should be pushing to ensure these are paid before you purchase the property.

dubrov

Zoe Uneven Thundercloud wrote:

Thanks for that. Should they be paid for an entire year or is there any rules on this?

There are no rules but normally it is paid pro rata by the seller. Technical, I believe the owner is always liable for the fees.

busylady

Zoe Uneven Thundercloud wrote: »

That's what I thought. It's a lazy EA again. Also mentioned that I could view the place next week...we are on lockdown ffs.

The Management company details ( accounts, budgets, up to date statements etc ) would normally be issued with the Contract for Sale - there is a fee for the Vendor to pay to the management company to obtain these documents and this would not normally be done until a sale is agreed and the contracts are ready to be issued. It is not a matter for the estate agent to deal with though they should be able to give you an idea of the management fees.

Paulownia

Zoe Uneven Thundercloud wrote: »

Thanks for that. Should they be paid for an entire year or is there any rules on this?

For example if they are paid yearly in August and I was to move in July, I'd assume that's just tough luck?

Your solicitor will give them a refund. It’s a standard process, also your solicitor must ask for the accounts before you close, normally the auctioneer would be able to get them for you