In June 2015, the Conveyancing Committee published two sets of pre-contract enquiries on the Society’s website covering sales of units in multi-unit developments, one being an updated set of the existing pre-contract enquiries dealing with units in developments that are subject to the Multi-Unit Developments Act 2011, and the other being a new set of pre-contract enquiries for units in developments that are not subject to the act.                                

Only developments that have the required residential elements are subject to the act. Developments not subject to the act will include shopping centres, office blocks, and other mixed-use developments with no residential units. It is hoped that the use of these pre-contract enquiries will allow vendors’ and purchasers’ solicitors to identify any problems that may exist at an early stage.

Please note that there are slight amendments to the previously published enquiries for units to which the act applies. Solicitors should ensure they are using the most up-to-date version, which will always be the version on the website, rather than relying on a previously downloaded copy of an earlier version.

Solicitors acting for prospective vendors of such units would be advised to familiarise themselves with the requirements of these enquiries with a view to equipping themselves to answer the enquiries when received. Some of the information required, particularly that relating to the appointment of managing agents, insurance, service charges, sinking funds, house rules and voting rights, should have been provided to the vendor as a member of the owners’ management company (OMC), but if the vendor cannot produce this information, it should be available from the OMC. In practice, it often turns out that the managing agents will be in possession of this information and be in a position to provide it. It is recommended that a copy of the pre-contract enquiries be sent to the managing agents as soon as possible.

It will be noted that the pre-contract enquiries do not require the certificate of membership of the OMC to be handed over. Membership in an OMC depends on ownership of a unit, so that once a unit is sold, the purchaser automatically becomes a member and the vendor’s membership lapses under the act. Vendors’ solicitors should notify the secretary of the OMC of the change of ownership as soon as the sale has closed.