Buying an apartment is an exciting step, but it’s very different from buying a house. When you buy into an apartment development, you also become part of a community where shared spaces and facilities must be managed fairly. This is where the Owner’s Management Company (OMC) comes in. Understanding how an OMC works – and your obligations as a purchaser – is essential to avoid surprises down the line.
In Ireland, the Multi-Unit Developments Act 2011 (MUDs Act) defines the legal framework for OMCs and requires them to manage the common areas in apartment blocks. Below, we explain the key issues every purchaser should be aware of.
The Role of the Owner’s Management Company (OMC)
By law, all multi-unit developments must have an OMC. Its main task is to maintain and manage the common areas of the development – such as hallways, lifts, gardens, car parks and shared green spaces.
Your solicitor will review the OMC’s documents as part of the conveyancing process and advise you on any issues that may affect your purchase.
Transfer of the Common Areas
Under Section 5 of the MUDs Act, once 80% of the units in a new development are sold, the developer must transfer the common areas to the OMC.
Common areas include:
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Hallways and stairwells
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Parking areas
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Shared gardens or green spaces
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Pathways and access roads
When buying, it’s important to check:
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Has the transfer of the common areas been completed?
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If not, has the OMC provided a timeline for completion?
Without this transfer, the OMC cannot fully operate as intended, and owners may face uncertainty over maintenance and repairs.
Service Charges – What Buyers Need to Know
Every apartment owner must pay an annual service charge to the OMC. This covers day-to-day expenses such as insurance, cleaning, security, landscaping and minor repairs.
Before completing your purchase, your solicitor should:
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Confirm that the vendor has paid the service charge up to date
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Request an up-to-date service charge statement
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Check if the OMC has imposed any additional levy on owners (for example, to fund fire safety works or roof repairs)
Important: If there are arrears, the OMC can hold the new owner liable – even if the debt arose before you bought the property.
Service charges are usually apportioned on completion. For example, if the charge covers 1 January–31 December and you complete the purchase on 1 July, you reimburse the seller for the portion covering 1 July–31 December.
It is important to check whether a levy has been placed on the service charge to cover the cost of essential repairs. This is more likely where there are not sufficient funds in the sinking fund to cover such works. The members must vote on any levy at a general meeting, and purchasers should request and review copies of the recent meeting minutes.
Understanding the Sinking Fund
Under Section 19 of the MUDs Act, every OMC must set up a sinking fund. This is a reserve fund to cover non-recurring costs such as major refurbishments, roof replacements or remediation works.
When reviewing the OMC documents, check:
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The current balance of the sinking fund
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How recent funds have been spent
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Whether major works are planned that may require further contributions
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The OMC’s plan for replenishing the fund if it is low
A healthy sinking fund is a good sign of a well-managed development.
Apartment Purchase – Dublin Solicitors
Apartment purchases can be more complex than house purchases, but with the right advice, the process can be smooth and stress-free.
If you have questions about OMCs, service charges, sinking funds or apartment purchases in Dublin, our property solicitors can guide you with clarity and care.
Call Dillon Solicitors LLP on 01 296 0666, contact one of our Property Experts – Adam Rockett, Pauline Horkan or Sally-Ann McCoy or email info@dillon.ie
