The Multi-Unit Developments Act 2011 came into operation on the 1st April, 2011. The Act addresses issues relating to the ownership and management of the common areas of both existing and new multi-unit developments, and to facilitate the fair and effective management of bodies responsible for the management of such areas. You can download and view the complete 35 page document from the Department of Justice and Equality website by clicking here. Alternatively, we have taken some of the key points of the Act and listed them below.

Some of the key points include:

1. Common areas must be transferred to the Owners' Management Company (OMC) where 80%+ of the residential sales have closed.

2. Common areas of existing developments must be transferred to the OMC by 30th September, 2011.

3. All costs involved in hand-over must be covered by developer.

4. Developer remains obligated to complete the development after transfer.

5. Annual service charge cannot be levied unless it has first been approved by members at an AGM.

6. Developers are responsible for the service charge on the unsold units from the date of sale of first unit.

7. OMC is obliged to establish a sinking fund in separate account.

8. A new owner of a residential unit has voting rights and assumes all responsibilities as a member of the OMC.

9. The OMC has the right to effect essential repairs by the developer, subject to affording the developer reasonable opportunity to carry out the necessary work, except in cases of absolute emergency.

10. One vote applies to each residential unit, each vote being of equal value.

11. An OMC director may not serve a term of greater than 3 years.

12. After 3 years an OMC director must retire, but may stand for re-election.

13. Each OMC member must be furnished with a complete Annual Report at least 10 days prior to an AGM.

14. Proposed budget relating to the annual service charge may be amended if approved by at least 60% of members at an AGM.

15. Disapproval of an Annual Service Charge requires 75% members voting against.

16. House rules are binding on unit owners and tenants, their servants, agents and licensees.

17. House rules must be circulated beforehand and approved by the owners at a general meeting.

18. The OMC is entitled to recover the cost of remedying any breach of House Rules as a simple contract debt.


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