Apartment Ownership Issues and Common Areas

The Multi-Unit Developments Act 2011 or MUD Act came into effect on the 1st of April 2011 and brought some much needed assistance for apartment owners. In particular it provides a remedy where ownership of the common areas of a development has not been transferred to the management company.

The act allowed a developer until the 1st of October 2011 to transfer the common areas to the management company. Thereafter an application to court can be brought to compel the developer to do so.

Prior to the MUD Act coming to force it was common for developers to have special weighted voting powers over Management Companies. The act now requires that any person wishing to exercise weighted voting must get court approval. Another provision provides that the directors of management companies cannot be appointed for life or for more than three years.

The fact that the developer has transferred the common areas does not absolve the developer of his obligations to complete the development.

Having a sinking fund to cover the cost of refurbishment, improvement and maintenance of a non- recurring nature is now put on a statutory basis.

We are available to advise you in relation to the act and also in relation to dispute resolution, mediation and court proceedings arising under the act. In addition where your management company has been struck off the register we can assist in having the company restored to the register of companies.

We are available to developers, concerned property owners, management companies and management agents.