Report on Multi-Unit Developments - Law Reform Commission

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D (9) <strong>Report</strong>s, Accounts and Auditing 77 (10)Sanctions for not complying with company law: strike-off 80 (11)Sanctions for not complying with company law: director‘s liability 84 (12)Training for Officers of Management Companies 86 Minimum governance requirements for all multi-unit developments 87 CHAPTER 4 TITLE AND CONVEYANCING 93 A Introduction 93 B Title issues 93 (1) Title Options 94 (2) Small Developments of less than 5 units 96 C Registration 99 (1) Compulsory registration 100 (2) Detailed aspects of compulsory registration 101 D Conveyancing issues 104 (1) Transfer of legal title only to owners‘ management company 104 (2) Owners‘ management company joins in conveyance with developer 105 (3) Retention by the owners‘ management company of a portion of the purchase price 106 (4) Taxation 108 (5) Phased Developments 113 E Covenants 114 CHAPTER 5 MANAGING AGENTS 123 CHAPTER 6 A Introduction 123 B Overview of difficulties concerning managing agents 123 C National Property Services Regulatory Authority 125 D Reforms concerning some key challenges 129 BUILDING INVESTMENT FUNDS AND SERVICE CHARGES 135 A Introduction 135 B Building Investment Funds 136 (1) Overview 136 (2) Mandatory building investment fund 137 (3) Detailed aspects of building investment funds 141 (4) Existing Developments 147 xii
CHAPTER 7 C Multi-Unit Development Service Charges 149 (1) Service charges: Provision of Information 151 (2) Apportionment of service charges 153 (3) Calculation of service charges 155 (4) Mixed-use developments 156 (5) Telecommunications and media services 157 REMEDIAL MEASURES AND REHABILITATION AND RESCUE OF DEVELOPMENTS 159 A Introduction 159 B Remedial measures and the regulatory setting 159 C Remedial measures for non-payment of Service Charges and Building Investment Fund Contributions 161 D Rescue and Rehabilitation 168 CHAPTER 8 SUMMARY OF RECOMMENDATIONS 173 APPENDIX A SUMMARY OF TITLE RECOMMENDATIONS 185 APPENDIX B DRAFT MULTI-UNIT DEVELOPMENTS BILL 2008 193 xiii
Page 1: MULTI-UNIT DEVELOPMENTS (LRC 90 - 2
Page 4 and 5: LAW REFORM COMMISSION‘S ROLE The
Page 6 and 7: LAW REFORM RESEARCH STAFF Director
Page 8 and 9: CONTACT DETAILS Further information
Page 10 and 11: National Association of Building Co
Page 12 and 13: TABLE OF CONTENTS INTRODUCTION 1 CH
Page 17 and 18: TABLE OF LEGISLATION Building Contr
Page 19: TABLE OF CASES AWA Ltd. v. Daniels
Page 22 and 23: B This Report and
Page 24 and 25: this makes it difficult to sell the
Page 26 and 27: Draft Sustainable Residential Devel
Page 28 and 29: freehold basis. 22 In 2005, as part
Page 30 and 31: managing agent and the owners‘ ma
Page 32 and 33: currently a wealth of expertise ava
Page 34 and 35: 39. The Commission is conscious tha
Page 37 and 38: CHAPTER 1 SUSTAINABILITY OF MULTI-U
Page 39 and 40: 1.03 This Chapter aims to consider
Page 41 and 42: comment, the Commission noted that
Page 43 and 44: has published guidelines for new ho
Page 45 and 46: Environment, Heritage and Local Gov
Page 47 and 48: 1.22 In the Consultation Paper, the
Page 49 and 50: charge. 43 The wording of that prov
Page 51 and 52: has concluded that the scope of s.1
Page 53 and 54: developments should be subject to p
Page 55 and 56: Charge Protocol agreed between Kilk
Page 57 and 58: subject, the authority may form the
Page 59 and 60: District Court, the maximum penalti
Page 61 and 62: 2 CHAPTER 2 THE ROLE OF DEVELOPERS
Page 63 and 64: appropriate responsibilities and en
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2.11 The Commission supports the re
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the proposal for a Designated Activ
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which would lead to clarification a
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development and reflect good practi
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planning authority where they are n
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equired to furnish a completion cer
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3 CHAPTER 3 THE OWNERS’ MANAGEMEN
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3.05 As noted in the Consultation P
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Companies Consolidation and Reform
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3.14 The Commission recommends that
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ecommendations constitute minimum l
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epresents the overwhelming majority
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system for economic activities 43 w
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law, limited liability companies mu
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obligations imposed on the company.
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3.51 The Commission also recommends
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entitlement to vote at owners‘ ma
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3.74 Sanctions imposed under compan
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Companies before the common areas h
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that the person should take reasona
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3.92 The Commission acknowledges th
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mindful that the core obligations s
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service charges, (d) maintain the f
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4 CHAPTER 4 TITLE AND CONVEYANCING
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to unit owners and any other person
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etween unit owners in these develop
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names of the additional joint owner
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owners‘ management company, thus
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equire to have compulsorily registe
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(2) Owners’ management company jo
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development in a timely manner. The
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A contract for the sale of a unit i
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4.52 Under the existing arrangement
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purchaser on the transfer or convey
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espected. 62 The parties to the pur
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At development stage: - a responsib
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developers, legal practitioners and
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- an obligation to keep the managem
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managing agent has de facto control
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5.10 The Report al
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valid tax clearance certificate. 15
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may supplement the hugely important
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of the time and effort involved in
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B (1) Overview Building Investment
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every development for the purposes
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some owners‘ management companies
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pursue on spending the funds of the
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uilding investment fund to any pote
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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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- 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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