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02.06.2023 03:18

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составить 5 вопросов к содержанию текста. Management companies for apartment blocks
The Multi-Unit Developments Act 2011 regulates the ownership and management of the common areas of multi-unit developments. The Act provides that before a developer sells any units:
• An owners' management company must be set up, and
• The common areas of the development must be transferred to the owners' management company to manage
• A multi-unit development is a development in which there are at least 5 residential units and the units share facilities, amenities and services. In practice, the majority of multi-unit developments are apartment blocks, but the Act also covers groups of houses that share common facilities and have an owners’ management company. In addition, the Act provides for some rules in relation to developments with between 2 and 4 residential units and it applies to mixed commercial and residential developments to a certain extent.
• Common areas
• The Act defines common areas as including:
• The external walls, foundations and roofs and internal load-bearing walls
• The entrance halls, landings, lifts, lift shafts, staircases and passages
• Architectural and water features
• All ducts and conduits, other than those within and serving only one unit in the development
• Cisterns, tanks, sewers, drains, pipes, wires, central heating boilers, other than such items within and serving only one unit in the development
• Other areas that are from time to time provided for common use
• The owner of each residential unit is entitled to membership of the owners’ management company and is generally entitled to one vote. Where alternative arrangements are already in operation, these may be continued, provided they are just and equitable.
Annual report
The company must prepare an annual report and hold an annual meeting to discuss the report. The report must include details of:
•Income and expenditure
•Annual service charges
•The sinking fund account
•Planned expenditure on maintenance and repair
•Insurance cover
•Contracts entered into by the company
The members must be given 21 days’ notice of the meeting and be provided with the report 10 days before the meeting. The annual general meeting must be held reasonably close to the multi-unit development unless 75% of the members of the company agree otherwise.
Service charges
The company must set-up an annual service charges scheme to pay for:
•The maintenance, insurance and repair of common areas within its control, and
•The provision of common services (for example, refuse collection, security, gardening) to unit owners
The initial charge can be set without holding a meeting of the members but, in general, these charges must be approved by a general meeting of the members. If over 75% of the members do not approve the proposed charge, the existing charge must remain in place.
Unit owners are obliged to pay the service charge (including developers in the case of unsold units). The service charge must be calculated on a transparent and fair basis and expenditure must be properly recorded.
The company may not enter into contracts with providers of goods and services which are to last for more than 3 years.