Revised Pre Contract Enquiries for purchase of a second hand apartment, New Practice Note and revised Client Memorandum on Surveys
New Precedent Multi-Unit Developments (MUDs) Pre Contract Enquiries for second hand apartments and duplexes have issued by the Conveyancing Committee.
The Conveyancing Committee has now decided that, in certain circumstances, many of the enquiries seeking confirmation that the Owners’ Management Company is complying with the MUDS Act (which is a statutory obligation) may be omitted.
Where there are no fire safety issues, and no substantial works required in an apartment development which is likely to increase the service charge in the short term it is now recommended that a vendor’s solicitor should firstly discuss the MUDS Pre Contract Enquiries directly with the vendor as it may not be necessary to get replies from the managing agent of the OMC. The documents of title will likely contain many of the documents sought by the new Precedent MUDS Pre Contract Enquiries issued (linked above).
If matters relating to fire safety or a substantial increase in the service charge do emerge and are not clarified to the satisfaction of the purchaser, then a solicitor for the vendor should consider raising all of the Pre Contract Enquiries with the Managing Agent in the ordinary course.
The Conveyancing Committee has also re-published the Client Memo on Surveys and Practitioners will note the substituted Section 12 dealing with fire safety issues. This arises as a result of a Government Report entitled Fire Safety in Ireland – Report of the Fire Safety Task Force that was published in 2018 following the Grenfell Fire Tragedy in London which resulted in the death of 70 people.
The substituted Section 12 in the Client Memorandum on Surveys acknowledges the serious problem for apartment owners if there is a finding of fire safety defects and acknowledges the substantial change in the information and advice purchasers need from a survey carried out in relation to an apartment they propose to purchase.