The primary purpose of the Multi-Unit Developments Act 2011 is to reform the law relating to the ownership and management of common areas of multi-unit developments and to facilitate the fair, efficient and effective management of owners' management companies (OMCs) which are the bodies established for the management of such areas.
Section 5 of the Act contains provisions which deal with completed or substantially completed multi-unit developments in which the common areas have not been transferred to the OMCs. They oblige the developer to transfer ownership of the relevant parts of the common areas to the relevant OMC within 6 months of the coming into operation of the section, i.e. before 1 October 2011. Subsection (2) defines “substantially completed” as developments in which sales of not less than 80% of the residential units have been closed.
Section 24 of the Act deals with the resolution of disputes and it provides that a person may apply to court for an order to enforce any right conferred or obligation imposed by the Act. The court, if satisfied that a right has been infringed or an obligation has not been discharged, may make such remedial order, including an order to transfer the common areas of a development from the developer to the OMC, as it deems appropriate in the circumstances with a view to ensuring the effective enforcement of the right or the effective discharge of the obligation in respect of the development concerned.
I have no immediate plans to introduce further legislation in this area. Operation of the existing law is, however, being kept under review by my Department.
