Report on Multi-Unit Developments - Law Reform Commission

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the context for such a study is markedly different now, but that it is appropriate to reiterate the recommendation in this <strong>Report</strong>. Given the work already done at local authority and Departmental level recently, the Commission recommends that this study would form part of the work leading to the final guidelines being developed within the Department as the lead State agency with responsibility for sustainable planning. 1.57 As already discussed, planning authorities have a number of different enforcement mechanisms of varying severity at their disposal, allowing them flexibility in ensuring that planning conditions are met. It is unclear to what extent these mechanisms are used consistently throughout the State. In this respect, the Commission has also concluded that a general review of the efficacy of the enforcement mechanisms open to planning authorities would be an appropriate adjunct to the general study. 1.58 The Commission recommends that a study be conducted by the Department of the Environment, Heritage and Local Government with a view to developing a focused and sustainable planning strategy for the multi-unit development sector in the wider context of the preparation of national planning guidance for planning authorities. The Commission also recommends that the study should include a review of the effectiveness of enforcement mechanisms under the planning legislation as applied to multi-unit developments. Development in Urban Areas and the companion document Urban Design Manual: A Best Practice Guide (both February 2008). 40
2 CHAPTER 2 THE ROLE OF DEVELOPERS A Introduction 2.01 In the discussion of the planning stage in Chapter 1, the Commission concluded that clear and consistent application of the existing planning code would greatly assist in avoiding potential problems in multi-unit developments. In this Chapter, the Commission uses the same general approach in its analysis of the role of the developer in a multi-unit development, namely, that appropriate arrangements to delineate the role of the developer would avoid many of the difficulties encountered in recent years. The Commission also makes proposals for reform which are intended to bring clarity to the appropriate roles of developer and purchaser in the multi-unit development setting. 2.02 In Part B, the Commission outlines some of the difficulties arising from the inappropriate role which developers have sometimes retained in multiunit developments in recent years. The Commission also explains why, particularly in the context of the role of the developer, it is useful to analyse a multi-unit development in terms of its three different stages, the planning stage, the development stage and the completion and post-development stage. In Part C, the Commission discusses its proposals concerning developers in the planning stage. In Part D, the Commission discusses its central proposals for reform that relate to the developer during the development stage. In particular, the Commission recommends that developers must register an owners‘ management company before any conveyance of a unit is completed, must vest legal title to the multi-unit development in that company and must register this title with the Land Registry, which forms part of the Property Registration Authority (PRA). The Commission also makes other recommendations for reform building on the Irish Home Builders Association‘s Code of Practice for Management Companies in respect of Multi-Unit Developments, 1 developed in conjunction with the National Consumer Agency. In Part E, the Commission discusses its proposals for the completion and post-development stage, which 1 March 2008, available at www.homefacts.ie. The Code came into force for IHBA members on 15 May 2008. 41
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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
Page 10 and 11: National Association of Building Co
Page 12 and 13: TABLE OF CONTENTS INTRODUCTION 1 CH
Page 14 and 15: D (9) Reports, Acc
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
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Page 51 and 52: has concluded that the scope of s.1
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Page 57 and 58: subject, the authority may form the
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Page 65 and 66: 2.11 The Commission supports the re
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Page 77 and 78: 3 CHAPTER 3 THE OWNERS’ MANAGEMEN
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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
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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 99 and 100: 3.67 The Commission recommends that
Page 101 and 102: 3.74 Sanctions imposed under compan
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Page 107 and 108: 3.92 The Commission acknowledges th
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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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5.28 The Commission recommends that
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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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