A report to be launched later today will recommend new legislation aimed at reforming the way apartment complexes are managed.
The Law Reform Commission says there are 'considerable problems' in this area, including 'a general and widespread lack of transparency' about the roles of developers, apartment owners and property managing agents.
It says developers sometimes hold on to effective control of management companies, while meetings are organised at short notice and at inconvenient times and locations. The commission also says increasing annual service charges are not being properly explained.
The commission report makes 67 recommendations for legislation. For new developments, it says developers should have to set up an Owners' Management Company and transfer legal title of the development to this before the sale of any apartment is completed.
It suggests that each apartment buyer would have one vote in the management company, with weighted voting prohibited. The commission also proposes that the management company hold 5% of the purchase money for each apartment in trust until common areas such as lifts and stairs are completed.
Under the proposed legislation, apartment owners would be given 21 days notice of an annual general meeting. The proposals would also limit the influence of property managing agents on management companies.
The commission says not all of its recommendations could be applied retrospectively to existing apartment developments, but says some of its proposals could be included in the legislation.
The report comes a day after the National Consumer Agency published a number of guidelines for people buying or living in apartment complexes.
