Question 1

Formal Complaint

Accepted Answer

Q: Our residents’ committee is eager to make a formal complaint about mismanagement of the Service charge account. Previously the managing agents have suggested that such a complaint must be disclosed to potential flat purchasers and could jeopardise sales. Is this reasonable? FPRA Committee Member Shaun O’Sullivan replies: The solicitor acting for the buyer of any property will raise pre-contract enquiries. These are designed to ensure that the potential purchaser knows exactly what he or she is buying before entering into a contract. In respect of leasehold property, it is usual for potential purchasers to require copies of service charge accounts for the last three years and to be advised if there are any outstanding service charge consultation procedures. Should there be an ongoing issue over service charge accounts then it is, in my view, not only reasonable but essential that such information should be declared; to withhold relevant information from the potential purchaser would be misleading. However, I do not believe that this should necessarily frustrate you from raising any genuine concerns in respect of service charge accounts with your Managing Agent [Submitted February 2017]

Question 2

Formal Complaint

Accepted Answer

Q: Our residents’ committee is eager to make a formal complaint about mismanagement of the Service charge account. Previously the managing agents have suggested that such a complaint must be disclosed to potential flat purchasers and could jeopardise sales. Is this reasonable? FPRA Committee Member Shaun O’Sullivan replies: The solicitor acting for the buyer of any property will raise pre-contract enquiries. These are designed to ensure that the potential purchaser knows exactly what he or she is buying before entering into a contract. In respect of leasehold property, it is usual for potential purchasers to require copies of service charge accounts for the last three years and to be advised if there are any outstanding service charge consultation procedures. Should there be an ongoing issue over service charge accounts then it is, in my view, not only reasonable but essential that such information should be declared; to withhold relevant information from the potential purchaser would be misleading. However, I do not believe that this should necessarily frustrate you from raising any genuine concerns in respect of service charge accounts with your Managing Agent [Submitted February 2017]

Formal Complaint

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