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Management Company mismanagement

I bought a house in 05 and signed with a maintenance company - they have done nothing in the past 3 years they now want to be paid for last year. I don’t want to pay what can I do. Liam in Lucan

This is a very serious problem with people living in Managed Complexes such as Apartment Blocks or small Estates  where a Management Company has been appointed to look after services -  they bill the owners and then may not properly look after the common areas.

When a person buys a property with a Management Company in place they agree to pay maintenance fees and separately the Management Company is obliged to carry out the servicing of  common areas. Unfortunately the fees that are paid must be paid regardless of whether or not the work is done but the owner can sue the Management Company for compensation for failure to carry out this work.

In answer to this Listener’s question: the only way to resolve it is for other owners to get together and dismiss the Board of the Management Company and get another service provider who will do the job properly. One of our own staff members has done this very successfully. (There is a bit of work involved in it but at least control will be in the hands of the owners and they can take responsibility for the common areas directly).

Check the Articles of Association of the Company (just like a Constitution) but I'd say that ordinary Company Law applies to rules regarding dismissing the officers of the Management Company  (An extraordinary general meeting can be called to vote out the Board of Directors and vote in new Directors; then that is the business done).

There is talk of new legislation in this area to appoint a Regulator of Management Companies but that has been in the pipeline since the last General Election and nothing further has happened.

The issues raised in the answer to this NewsTalk listener's question are dealt with in a general way as can only be the case on live radio. Before relying on the advice given in this answer, whether you heard the broadcast or are for the first time reading the issues here please do not rely on the broad advice given. For a detailed professional opinion please consult a qualified legal advisor and for further details read our disclaimer on the Home Page.

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