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Housing Management Companies

Dáil Éireann Debate, Tuesday - 16 October 2012

Tuesday, 16 October 2012

Questions (470)

Peter Mathews

Question:

470. Deputy Peter Mathews asked the Minister for Justice and Equality the action he will take regarding management companies or agents who claim they cannot pay for essential maintenance which is in the interest of the general public such as replacement of road signs including stop signs, traffic calming measures, loose manholes and so on; and if he will make a statement on the matter. [44575/12]

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Written answers

Under the Multi-Unit Developments Act 2011, the owners' management company (OMC) is responsible for the setting and collection of the annual service charge. Section 18 of the Act provides that the OMC must establish a scheme for annual service charges to fund expenditure on:

- insurance;

- general maintenance;

- repairs;

- waste management;

- cleaning;

- gardening and landscaping;

- concierge and security services;

- legal services and accounts preparation; and

- other expenditure arising in connection with the maintenance, repair and management of the common areas.

Section 18 also places an obligation on unit owners to pay the annual service charge, while section 22 provides that unpaid charges may be recovered by the OMC as a simple contract debt. OMCs generally enter into a contract with a property management agent to provide services in respect of their development. The specific tasks of the agent are therefore dependent on the nature and extent of that contract.

Provisions relating to the licensing of property management agents are set out in the Property Services (Regulation) Act 2011 and are implemented by the Property Services Regulatory Authority. As part of the licensing system, the Authority specifies and implements standards relating to:

- education, training and experience levels of licensees;

- levels of professional indemnity insurance,

- quality of financial accounting systems, and

- ethical standards to be observed in the provision of property services.

The Act also empowers the Authority to investigate complaints against property management agents and to impose sanctions, including the revocation or suspension of licences, in cases of improper conduct on the part of licensees.

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