‘Our estate’s management company refuses to refund its surplus. It says it’s not obliged to’

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Property Clinic: ‘I engaged a solicitor, at my own expense, to send them a letter, but they are still refusing to credit the members on account’

The issue here is the interpretation of the Act. The Act does not set out to provide refunds for owners but rather seeks to ensure that the OMC is funded and that the funds remain in the OMC. The relevant subsections are as follows:

Section 18: “[...] any excess may, notwithstanding subsection , be applied on expenditure which may be incurred by the sinking fund established pursuant to section 19.” I note there are seven references to “they” and “them” in this query. I think this demonstrates a misunderstanding of the role of the OMC. An OMC operates upon the principle of collective responsibility. The directors of the OMC are volunteers who act out of a sense of civic duty and give of their time freely to represent all the members of the management company in the running of the OMC.

 

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