The Management Company

The management company is the company set up to manage and service the common areas of the apartment or townhouse development. On the completion of a development, ownership of the common areas of the development is vested in the Management Company formed for this purpose. The group as a whole will elect directors and often a committee to deal with any management issues.

Each owner automatically becomes a member and shareholder of the management company upon purchasing their apartment or townhouse. A board of directors oversees the management company. The directors will be the property’s developers at the outset who are then replaced with residents once all of the units in the development have been sold.

There will be management fees and it is vital should you decide to purchase an apartment in a block that there is an adequate sinking fund in place.