New build - Option to becoming a director on management company??

Matchermike

Hi All,

I wonder if anyone has any experience, or can provide any advice please.

I bought a new build house, part of 11 houses on a small estate. Part of purchase agreement was that upon the sale of the last property, the management company setup for management of the shared areas and septic tank would transfer over from the builder, to the owners. Each house would have the opportunity to appoint one director. The management company has employed a secretary who takes a nominal weekly fee.

I believe it is in my interests as a homeowner to become a director. But i am totally unclear on how these things run, what responsibilities i would have. Does anyone have any experience?

All homeowners pay a small fee to the company each month for services. I fear things such as - what if the septic tank fails and needs replacing. Do we as a company need to chase debts. Change fees. Do we need to ensure the shared areas and septic services being taken over from the developer are fit for purpose before we replace the outgoing director (developer).

Is there somewhere i can go for advice? I will reach out to the secretary in the first instance.

Thanks
MatcherMike

eddddy

Matchermike said:

All homeowners pay a small fee to the company each month for services. I fear things such as - what if the septic tank fails and needs replacing. Do we as a company need to chase debts. Change fees. Do we need to ensure the shared areas and septic services being taken over from the developer are fit for purpose before we replace the outgoing director (developer).

As a company, you'll be responsible for adding up costs, issuing bills, collecting money, chasing non-payers etc.

If the sceptic tank fails and needs replacing (and isn't under any kind of warranty) the situation is likely to be that your company has to get the quotes, collect the relevant money from everyone, arrange for the work to be done, and pay for it.

If it's under warranty, the company will need to make a warranty claim, and do whatever the terms of the warranty require.


If the shared area and/or sceptic tank isn't currently "fit for purpose" that's not really a reason to delay transfer of the management responsibilities.

You need to look at your house purchase contract to see if the developer has breached the contract by not providing facilities that are "fit for purpose" and/or whether there's a warranty claim you can make.

canaldumidi

By becoming a director you will have some input into the decision-making process: what money gets spent, and how much, on what, and when.

By not becoming a director you will simply receive, and have topay, whatever charges your receive.

Racky_Roo

You can appoint a management company to collect the money and sort out the maintenance for the estate etc you don’t actually need to do that. It’s probably ok for the first few years as everything is new, but as time goes on, more will need doing. In my last property, they self managed the first 5 years then employed a management company as more needed doing. 

But as director you’ll have the final say on decisions. 

Just be aware that your personal details are published on companies house