Report on Multi-Unit Developments - Law Reform Commission

8.55 The Commission recommends that the statutory code of practice to
be prepared under the proposed Property Services Regulatory Bill 2008 should
include an obligation on estate agents and auctioneers that, when advertising a
unit in a multi-unit development for sale, they must provide details of the
building investment fund to any potential buyer, together with a report on the
expected depreciation of the development‘s structure, fixtures and fittings.
[Paragraph 6.29]
8.56 The Commission recommends that building investment fund monies
should be statutorily exempt from any charge to tax for the purposes of the
Taxes Consolidation Act 1997. [Paragraph 6.31]
8.57 The Commission recommends that the building investment funds
monies must be kept in a bank account separate to any other account operated
by either the owners‘ management company or property managing agent.
[Paragraph 6.35]
8.58 The Commission recommends a study be undertaken by the National
Consumer Agency in conjunction with the National Property Services
Regulatory Authority in order to devise a list of the purposes for which the
building investment fund may be used. [Paragraph 6.39]
8.59 The Commission recommends that a study be undertaken by the
National Property Services Regulatory Authority in order to devise best practice
guidelines as to how building investment fund costs should be calculated.
[Paragraph 6.42]
8.60 The Commission recommends that existing large multi-unit
developments; ie those which involve 5 units or more, must establish a building
investment fund within 5 years. [Paragraph 6.48]
8.61 The Commission recommends any conveyance which purports to
contract out of the requirement to establish a building investment fund shall be
void. [Paragraph 6.49]
8.62 The Commission recommends all multi-unit developments must
maintain a scheme of annual service charges. [Paragraph 6.56]
8.63 The Commission recommends that that the National Property
Services Regulatory Authority in conjunction with the National Consumer
Agency devise guidelines explaining the correct amount of information to be
given to the unit owners in the breakdown of charges. [Paragraph 6.60]
8.64 The Commission recommends that the National Property Services
Regulatory Authority in conjunction with the National Consumer Agency
examine the possibility of producing best practice guidelines for apportionment
of service charges, specifically tailored to the Irish multi-unit development
situation. [Paragraph 6.66]
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