The Multi–Unit Development Act, 2011 (MUD Act) came into operation on the 1st April 2011 with the primary purpose of ensuring the timely transfer of common areas of multi–unit development to the owners' management company.
The MUD Act applies to multi–development units containing residential units only and to mixed use developments containing residential units.
The main points to note are as follows:
- In existing multi–unit development in which a residential unit has already been sold, but the common areas have not been transferred by the developer to the owners' management company, the developer shall arrange for such transfer to the owners' management company within 6 months.
- In new multi–development units the common areas must be transferred to the owners' management company prior to the sale of the first residential unit.
- An owners' management company shall establish a "sinking fund" for the purpose of discharging the costs incurred on refurbishment, improvements and maintenance of a non recurring nature. Where no fund has been established one must be in place by 30th September 2012 at the latest.
- Section 26 establishes a new Circuit Court jurisdiction to deal with disputes between parties, however, if a form of dispute resolution has not been attempted, the Court may require the parties to engage in mediation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.