Management company question.

Fr Dougal

Can anyonegive me sme advice.

I'm looking to buy an 8 year old house and today my offer was accepted. However, the estate agent advised me, this evening that the last sale of this property fell through because of a problem with the management company. Apparently they had not paid their taxes and were dissolved.
The agent said they are now trying to set up the management company and things are progressing well.

It's a small development, 8 apartments and 4 terraced houses. I'm looking to buy one of the houses so I will be looking after my own insurance, roof maintenance etc. The management company should just look after the common area's. It's a small courtyard with about 30' by 30' of grass in one corner. Do you folks think it would be safe enough to go ahead with the purchase, even thoughthere is an issue with the management company? Any advice would be appreciated.

Has anyone experienced similar?

Thanks.

Borzoi

I suspect your own solicitor would advise you against making the purchase.

As ever a huge problem would be insurance - if there is no management co, there is no public liability insurance on those public spaces, so if there's an accident, the 'victim' would be in a position to take you (annd the rest of the owners) to court.

TBH unless it's your dream house, forget about it untill the new man. co. is set up

Fr Dougal

Cheers Borzoi. Thanks for the advice.

Think I was already leaning in that direction.

Victor

The agent said they are now trying to set up the management company and things are progressing well.

... until something goes wrong.

They had little business putting it on the market without telling prospective buyers of this issue.

Talk to your solicitor, but I'd be looking to kick both the sellers, management companies director's and the seller's butts.

Is there a risk that there are debts registered agaisnt the property?

A complaint to the www.iasi.ie or www.iavi.ie might not go astray.

Fr Dougal

Cheers. We were already thinking of dropping it. We've stepped back and are looking elsewhere.

Victor

Oh, I presume your deposit is safe.

Fr Dougal

We dropped the sale buton friday evening the agent called me and sad that the management company was set up ok. I checked with the secretary of the residents association and she confirmed that the residents association have registered themselves as the management company as there's only 11 units.
I've also spoken to the residents asssociation accountant and he confirmed that their accounts aer up to date.

My solicitor is after giving me the go ahead so we're going to proceed.

Thanks for the advice guys.