• Multi-Unit Development Act

Multi-Unit Development Act

The Multi-Unit Developments Act 2011 (pdf) came into effect on the 1st of April 2011. It regulates the ownership and management of the common areas of multi-unit developments, and provides for the setting up of owners’ management companies to manage such areas.

A multi-unit development is a development in which there are at least 5 residential units and the units share facilities, amenities and services. In practice, the majority of multi-unit developments are apartment blocks, but the Act also covers groups of houses that share common facilities and have an owners’ management company. It also applies to mixed commercial and residential developments to a certain extent.

The Act provides that an owners’ management company must be set up, and the common areas of the development transferred to it, before the developer sells any units. For existing developments where one or more units had already been sold, the developer had 6 months from when the Act came into effect – until 30 September 2011 – to transfer ownership of the common areas.

A brief and helpful explanation of the major components of the act can be found on the Citizen’s Information web site (LINK).