Buying an apartment where common areas have not been transferred to the management company

Hermenegilda

I've been sale agreed from a few weeks now. I learned that common areas have not been transferred to the management company. From what I'ven reading, this is a red flag, but I don't fully understand the consequences. Should I walk away?

JVince

Is the development finished? Is there another phase expected? or is it an old development?

I suggest you get a copy of the OMC accounts and ask the OMC directors what the issue is

Hermenegilda

It is an old development, finished in 2008, buying second-hand.

timmyntc

Which common areas are not transferred to OMC? Internal or external common areas?

If it doesn't belong to OMC, there are a number of headaches around maintenance, insurance, and it will affect your resale too if you decide to in future.

Stay away imo

JVince

Here's a document for 2008 that will give you info

https://apartmentownersnetwork.org/wp-content/uploads/2021/12/common-areas-of-apartment-developments.pdf

Basically it should be done at some stage and there should have been an undertaking given to the current seller and the benefit of that undertaking is passed onto you.

I wouldn't be overly concerned if the undertaking is there and there's a management company in place.

AndrewJRenko

https://www.boards.ie/discussion/2058340125/buying-an-apartment-where-common-areas-have-not-been-transferred-to-the-management-company

What advice are you getting from your solicitors? They should be protecting your interest.

Hermenegilda

Thank you for all the answers.

My solicitor doesn't seem too concerned.

There is a management company, and I was informed that they have engaged a solicitor to represent them in the transfer. So it looks like it might be happening, but I don't know the detailed status.

GalwayGaillimh

Country full of developments where common areas not transferred...

Mud act was meant to sort that but expense of bringing developers to court is excessive...

Roberto_gas

https://www.boards.ie/discussion/comment/121879287#Comment_121879287

what are the implications?? If its just roads/landscape and external lights does it make much of an issue?

Dav010

+ Insurance.

They all cost money to maintain.