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Who owns communal buildings?

Posted: 29 Oct 2009 16:15
by julie
Hi Nigel,

Can you tell me who usually owns the communal buildings and facilities on a communal development (e.g. clubhouse, shop units, bar etc)

We have purchased off plan on a development with such facilities and I was concerned to learn that at another development by the same developer, a charge was made to the owners committe (taken from their maintenance fees) for rental of the clubhouse and bar. I had assumed ( and cannot find anything to the contary in our contract) that all owners on the development (which includes a mixture of apartments and villas) would own a share of the common areas (including roads, pools, clubhouse etc etc)- we are certainly liable for their maintenance. In which case why would we need to rent them from ourselves?

Is there an accepted way of running communal facilities in terms of what is usually charged for?

I would be interested on your thoughts

Also have you ever heard of an additional 'development preparation charge' - to cover the communal facilities and payable on completion. Again this has been charge at another similar development - but we have never heard of this before and had assumed that the purchase price included all the communal facilities to the point of them being fit for use (that was certainly the impression given during marketing)Essentially the property was marketed as being on a communal development with facilities to include several outdoor communal swimming pools and sunbathing areas, shop, bar/ restaurant, clubhouse with indoor pool, gym, jaccuzi etc
The previous development apparently got a bill of more than £2000 equivalent each for 'development preparation / setup' (which would be more than EUR 500 000 for the whole development by my estimation) - that's a lot of preparation!

Have you heard of this before?


Of course we realise that we are responsible for maintenance fees once the development is delivered but weren't expecting to pay anything else.


thanks

Julie

Re: Who owns communal buildings?

Posted: 29 Oct 2009 17:41
by Nigel Howarth
Hi Julie

The owners of the properties in the development each have a share of the common facilities and each contributes to the cost of insuring, maintaining, and managing those common facilities.

But I guess what you really want to know is what those common facilities are. The Land Registry will have the answer - as the development will (should) have been registered at the Land Registry by the developer.

I don't understand how anyone would agree to pay the rent on something they already owned - the clubhouse and bar. This sounds like a scam to me!!! How were these people persuaded to pay?

'Development preparation charge' - never heard of it! - sounds like another scam!!

You need to read though your contract of sale and see precisely what you are getting for your money and what the developer is supplying.

Anything extra the developer demands is 'open to negotiation'.

Have you, or any of the buyers in the developments concerned taken independent legal advice?

Regards,

Re: Who owns communal buildings?

Posted: 29 Oct 2009 21:21
by julie
Thanks Nigel,

I thought as much.

We have had legal advice but I'm beginning to think it wasn't very independent!

I am considering discharging our current solictor and employing someone who might actually look after our interests - just hoping it's not all too late in the day.

I assume a decent solicitor will be able to find out what it says on the land registry?

Julie

Re: Who owns communal buildings?

Posted: 30 Oct 2009 22:43
by Nigel Howarth
Hi Julie,

Yes - a decent lawyer will be able to find out what it says at the Land Registry. The British High Commission publishes a list of English-speaking lawyers on its website - you can also find a copy at http://www.news.cyprus-property-buyers. ... /id=002254

Regards,

Re: Who owns communal buildings?

Posted: 20 Dec 2014 10:19
by Loki000
Also have you ever heard of an additional 'development preparation charge' - to cover the communal facilities and payable on completion. Again this has been charge at another similar development - but we have never heard of this before and had assumed that the purchase price included all the communal facilities to the point of them being fit for use (that was certainly the impression given during marketing)Essentially the property was marketed as being on a communal development with facilities to include several outdoor communal swimming pools and sunbathing areas, shop, bar/ restaurant, clubhouse with indoor pool, gym, jaccuzi etc
The previous development apparently got a bill of more than £2000 equivalent each for 'development preparation / setup' (which would be more than EUR 500 000 for the whole development by my estimation) - that's a lot of preparation!

Re: Who owns communal buildings?

Posted: 20 Dec 2014 10:45
by Nigel Howarth
Hi NAAT & welcome to the forum.

I have never heard of an additional 'development preparation charge'.

I suggest you read through your contract of sale as this will tell you precisely what you're getting for your money. You should expect nothing more and nothing less.

Regards,