Multi-Unit Development Act 2011

The Act came into operation on 1 April 2011.

The  Multi-Unit Developments Act 2011 should result in the timely transfer of common areas of multi-unit developments to the owners’ management company.  The Owners’ Management Company (OMC) is comprised of the owners of the individual units.  The Act outlines  provisions relating to  the management and operation of the OMCs, including rules relating to the holding of annual general meetings; the calculation of service charges; the establishment of sinking funds and the making of house rules.

The legislation applies to multi-unit developments containing residential units only and to mixed-use developments containing residential units. It also applies to housing estates which have owners’ management companies.

Common areas must be transferred to the owners’ management company prior to sale of the first residential unit.   A sinking fund must be put in place.

As regards voting rights in owners’ management companies, the general rule for residential developments is that one vote attaches to each residential unit. In mixed-use developments, other voting arrangements may apply as long as they are fair and equitable.

The Act established a Circuit Court jurisdiction to deal with disputes between parties. However, if mediation or another form of dispute resolution has not already been attempted, the Court may require the parties to engage in a mediation process. Costs may be awarded against a party which does not engage in a meaningful way in such mediation.

The Multi-Unit Development Act 2011 can be downloaded here