We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Member of Management Company - yes or no?

We're buying a property that went to auction but didn't sell. part of the conditions contained in the auction pack was that the purchaser had to become a member & director of the management company that will manage the estate's common ground. Estate management fees are allocated as per "a fair proportion" - we'll own a bigger chunk of the estate than anyone else so presumably will pay the most!

The seller's pack came across today but doesn't mention becoming a member of the management company. Before I push our solicitor to get that included, I just wanted to check - this is likely to be beneficial, isn't it? As otherwise we can't be involved in decisions?

Comments

  • 2005eyeball
    2005eyeball Posts: 41 Forumite
    Anyone have a view?
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You will need to check the lease, if it is leaehold. Or Title documents if it is freehold.

    To see what the structure of the management company, who it comprises; how it is structured, and paid for.

    Your solicitor should explain all this once he's reviewed the documents. If he does not explain, or you don't understand - ask.
  • 2005eyeball
    2005eyeball Posts: 41 Forumite
    I've seen the documents, the remainder of the land will be owned by the management company (bought for £1 the day after the last plot sells), it looks like all plot owners will be members/directors. The relevant paperwork is missing from the documents sent to the solicitor (it was in the auction pack but not in the new seller pack).
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Then assuming a) the documents are missing, and b) your solicitor is any good, he'll request the documents.
  • propertyman
    propertyman Posts: 2,922 Forumite
    in these cases the lease or freehold transfer, or adeed which either refer to obligating you to join, must make this a requirement, or be a condition of sale.it is unenforceable to require that you become a director, only a member or shareholder.
    Stop! Think. Read the small print. Trust nothing and assume that it is your responsibility. That way it rarely goes wrong.
    Actively hunting down the person who invented the imaginary tenure, "share freehold";
    if you can show me one I will produce my daughter's unicorn
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.