Is this normal practice

zidac

A question about a property in a small multi-unit development (8) because of lack of clarity about parking the management company was struck-off some years ago and we are in the process of restoring.

One of the units was sold a few years ago without company in place, another is in the process of transfer right now. The solicitor representing the buyer wants to talk to one of the other 7 members who has absolutely no involvement whatever in the sale.

I think a bit unusual, what's the view here? There is not a problem talking to the solicitor should he decide to call.

Lenar3556

Is it the case that the owners managment company has been struck off the register of companies? This would normally arise out of a failure to file annual returns, I don’t understand what parking has to do with it?

The role and responsibilities of the owners managment company (OMC) will depend on the nature of the development. For example an OMC would have a central and indeed a critically important role in the operation of an apartment block. Stand-alone dwellings where there are simply some common areas to be maintained would likely amount to a less critical function.

In any case, it is wise to have the company restored to the register and put in place a competent board of directors who will prevent a recurrence of the previous situation.

An OMC which has been struck off is an immediate red flag to arise in the purchase of a property, and it is likely that the solicitor acting for the purchaser is trying to establish the ‘lie of the land’ to enable him to best advise his client on the extent of the trouble that exists.

Ultimately it is the remaining property owners that will need to pull together to get this resolved, so it is understandable that the solicitor would like to understand what and who the perspective purchaser is likely to be met with should he decide to proceed with the purchase.

zidac

https://www.boards.ie/discussion/comment/119470018#Comment_119470018

Thanks for reply.

This is a public listed CRO management company but the two directors it has were owners and it appears did not fulfill their function as directors very well as they allowed the company to be struck off without flagging to the members, i am a member. Both of these directors have sold their properties and i am in the process of having the company restored with a member who just bought into the property.

The reason for the parking issue is that a person who is not part of this development was/is claiming parking rights in the common car park which i expect will be sorted as soon as the management company is restored.

The solicitor who wants to have the conversation is acting for the new buyer, ha also acted tor the vendor in the last sale about 3 years ago and that sale was for one of the directors. Both of these sales were cash sales and property transferred without management company which i was led to believe could not be done but it seems it can if both parties agree.

As i said i have no problem comparing notes as i want this sorted. The currant sale has completed and with land registry so i am at a loss as to why he wants to talk to me as i think he would have access to land registry and CRO information.

I never heard of a solicitor initiating a conversation with a person without his clients instruction so i suspect he was told some tall-tails and wants to clarify for himself.

I just thought i would mention here to see what people would say.