Insurance Liability

[rollwithit]

Hi Nigel and welcome back I hope you had a nice break

Can I ask you, our Developer is withdrawing the maintenance provider to our complex, they are claiming that a lot of owners
are not paying their fees (however there is a continued dispute). Is it now the responsibility of the developer to ensure that the insurance is still in place. ie. If there was an accident (in the communal area) would the developer be liable since seperate title deeds are not issued?

Also if the committee have to run the complex themselves and pay the bills etc do they need the permission of the developer? I have heard they require the developers permission and a reference number ?? from the developer. This reference number must be registered with Land Reg etc.

Look forward to hearing from you.

Rollwithit

[Nigel Howarth]

Hi Rollwithit - thanks, I had a nice break in Lebanon - it's well worth a visit if you ever get the chance.

Unfortunately, non-payment of communal charges is a very common problem - particularly when many of the residents are absent. As for insurance, you need to look at your contract of sale - this should tell you who is responsible for what. But even if it is the developer's responsibility it could take you years to chase him through the courts - and even if you were successful, getting the decision of the court enforced could be another problem. You would probably end up paying in legal fees etc than taking the management of the complex over yourselves.

From your message, I'm not sure whether you have a Management Committee or not? If you do have one that is registered with the Land Registry, then it is that committee's responsibility (not the developer) to ensure that insurance, etc is in place.

The registration of a jointly owned building at the Land Registry is made by an application submitted by the owner of the building. The owner is defined by the law as the person entitled to be registered as the owner or the actual person registered. Therefore, a project without separate deeds can be registered.

Once the building is registered as being jointly owned, then you can set up a Management Committee to manage the complex. But you must be very careful to keep to the letter of the law when establishing a committee, otherwise your application to the Land Registry will be rejected. So you will need to take legal advice on this matter.

Regards,