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

0gac3yjefb5sv7 · 22-04-2020 05:23PM #1

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

Thanks

dubrov · 22-04-2020 05:26PM

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 · 22-04-2020 05:36PM

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 · 22-04-2020 08:58PM

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 · 22-04-2020 09:40PM

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 · 22-04-2020 09:45PM

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.

22-04-2020 09:56PM

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 · 22-04-2020 11:46PM

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 · 22-04-2020 11:48PM

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 · 22-04-2020 11:48PM

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 · 23-04-2020 04:35PM

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

0gac3yjefb5sv7 · 23-04-2020 04:48PM

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 · 23-04-2020 05:12PM

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 · 23-04-2020 05:24PM

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 · 23-04-2020 05:31PM

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 · 23-04-2020 05:35PM

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

dancingqueen · 23-04-2020 05:38PM

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 · 23-04-2020 07:28PM

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 · 23-04-2020 08:49PM

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 · 23-04-2020 08:53PM

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

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

Comments