Report on Multi-Unit Developments - Law Reform Commission

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should, continue for those who wish to use that well-established title arrangement. 12 4.08 Assuming the enactment of the Land and Conveyancing Law Reform Bill 2006 therefore, the Commission can identify 8 possible title arrangements: Model A Large (5+ units) Freehold Residential Development with an owners‘ management company, Model B Large (5+ units) Leasehold Residential Development with an owners‘ management company, Model C Large (5+ units) Freehold Mixed Development with an owners‘ management company, Model D Large (5+ units) Leasehold Mixed Development with an owners‘ management company, Model E Small (2-4 units) Freehold Residential Development with an owners‘ management company, Model F Small (2-4 units) Freehold Residential Development with a co-ownership scheme, Model G Small (2-4 units) Leasehold Residential Development with a co-ownership scheme, and Model H Small (2-4 units) Leasehold Residential Development with a co-ownership scheme. (2) Small Developments of less than 5 units 4.09 The Commission now turns to discuss in detail why, from a title and conveyancing point of view, developments of 4 units or less should not be required to establish an owners‘ management company recommended in Chapter 3 for larger multi-unit developments of 5 units or more. 4.10 First, in the Consultation Paper, the Commission noted that the establishment of a highly structured and formalised management organisation may not be appropriate for smaller developments. 13 Smaller developments typically consist of townhouses which have been converted into two, three or four unit developments. There tends to be a lesser degree of interdependence 12 See Consultation Paper paragraphs 10.08 – 10.09. 13 (LRC CP 42-2006) paragraph 8.14. 96
etween unit owners in these developments as the common areas extend generally to a common entranceway and staircase. As a result, it is clear that it is unnecessary for an owners‘ management company to be established to undertake such a relatively limited ownership, maintenance and management role. 4.11 The Commission makes recommendations later in this Chapter with regard to requiring all parties to a conveyance of a unit in a multi-unit development to agree formally to and abide by certain core and immutable obligations. 14 In respect of small developments, the Commission acknowledges that the level of interdependence in developments of 4 units or less tends to be relatively low. Notwithstanding this, however, the Commission considers that insertion of the core and irreducible covenants in conveyancing documentation for units in smaller developments is desirable in the interests of clarity and certainty. The Commission accordingly recommends that, as in the case of larger developments, all parties to the conveyance of a unit in a small development should be subject to core and irreducible obligations. 4.12 In many instances, the governance of the common areas is covered by extensive provisions inserted in a co-ownership arrangement for the common areas agreed by the owners of the units in such a development. 15 The Commission provisionally recommended in the Consultation Paper that the Conveyancing Committee of the Law Society of Ireland should consider urgently issuing precedents for the legal documentation suitable for small multiunit developments. 16 These precedents would include core obligations attributable to all parties to a conveyance of a unit in a multi-unit development. The Commission is satisfied that this recommendation has general support and, accordingly, reiterates it in this <strong>Report</strong>. 4.13 The Commission recommends that parties involved in the conveyance of a unit in a small development should be subject to core and irreducible obligations. 17 14 See paragraphs 4.65-4.78 below. 15 The co-ownership typically contemplated in smaller developments would involve each unit owner holding title individually their particular unit and holding the freehold of the development overall as a tenancy in common. See further LRC (CP 42-2006), paragraphs 10.26-10.32. 16 17 The Commission is aware that the commercial publishers have also played a valuable role in the publication of relevant precedents: see in particular Laffoy‟s Conveyancing Precedents. See paragraphs 4.65-4.83 below. 97
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MULTI-UNIT DEVELOPMENTS (LRC 90 - 2
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LAW REFORM COMMISSION‘S ROLE The
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LAW REFORM RESEARCH STAFF Director
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CONTACT DETAILS Further information
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National Association of Building Co
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TABLE OF CONTENTS INTRODUCTION 1 CH
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D (9) Reports, Acc
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TABLE OF LEGISLATION Building Contr
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TABLE OF CASES AWA Ltd. v. Daniels
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B This Report and
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this makes it difficult to sell the
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Draft Sustainable Residential Devel
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freehold basis. 22 In 2005, as part
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managing agent and the owners‘ ma
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currently a wealth of expertise ava
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39. The Commission is conscious tha
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CHAPTER 1 SUSTAINABILITY OF MULTI-U
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1.03 This Chapter aims to consider
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comment, the Commission noted that
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has published guidelines for new ho
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Environment, Heritage and Local Gov
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1.22 In the Consultation Paper, the
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charge. 43 The wording of that prov
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has concluded that the scope of s.1
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developments should be subject to p
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Charge Protocol agreed between Kilk
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subject, the authority may form the
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District Court, the maximum penalti
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2 CHAPTER 2 THE ROLE OF DEVELOPERS
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appropriate responsibilities and en
Page 65 and 66: 2.11 The Commission supports the re
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Page 69 and 70: which would lead to clarification a
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Page 75 and 76: equired to furnish a completion cer
Page 77 and 78: 3 CHAPTER 3 THE OWNERS’ MANAGEMEN
Page 79 and 80: 3.05 As noted in the Consultation P
Page 81 and 82: Companies Consolidation and Reform
Page 83 and 84: 3.14 The Commission recommends that
Page 85 and 86: ecommendations constitute minimum l
Page 87 and 88: epresents the overwhelming majority
Page 89 and 90: system for economic activities 43 w
Page 91 and 92: law, limited liability companies mu
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Page 95 and 96: 3.51 The Commission also recommends
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Page 101 and 102: 3.74 Sanctions imposed under compan
Page 103 and 104: Companies before the common areas h
Page 105 and 106: that the person should take reasona
Page 107 and 108: 3.92 The Commission acknowledges th
Page 109 and 110: mindful that the core obligations s
Page 111 and 112: service charges, (d) maintain the f
Page 113 and 114: 4 CHAPTER 4 TITLE AND CONVEYANCING
Page 115: to unit owners and any other person
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Page 121 and 122: owners‘ management company, thus
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Page 125 and 126: (2) Owners’ management company jo
Page 127 and 128: development in a timely manner. The
Page 129 and 130: A contract for the sale of a unit i
Page 131 and 132: 4.52 Under the existing arrangement
Page 133 and 134: purchaser on the transfer or convey
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Page 137 and 138: At development stage: - a responsib
Page 139 and 140: developers, legal practitioners and
Page 141: - an obligation to keep the managem
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Page 146 and 147: 5.10 The Report al
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Page 150 and 151: may supplement the hugely important
Page 154 and 155: of the time and effort involved in
Page 156 and 157: B (1) Overview Building Investment
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mandatory for gated developments to
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older multi-unit developments which
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6.52 The Commission acknowledges th
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surprising, as such standards are c
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edrooms in a given apartment. The r
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change their managing agent if they
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7 CHAPTER 7 REMEDIAL MEASURES AND R
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C Remedial measures for non-payment
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diverted to the owners‘ managemen
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very difficult to enforce in practi
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through them. The NPSRA will also b
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is an immediate problem with the ro
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7.39 The Commission envisages there
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8 CHAPTER 8 SUMMARY OF RECOMMENDATI
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8.14 The Commission recommends that
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- an obligation to discharge all re
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Even though legal title is transfer
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‗Completion of development‟ inc
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The remainder of this Appendix cont
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APPENDIX B DRAFT MULTI-UNIT DEVELOP
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DRAFT MULTI-UNIT DEVELOPMENTS BILL
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Duties and entitlements of develope
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(a) the name of the company in acco
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(a) that each unit owner shall abid
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(e) develop covenants and agreement
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purposes of a multi-unit developmen
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Report on Multi-Unit Developments - Law Reform Commission

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