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New build contract and covenants

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  • New build contract and covenants

    We are in thenprocess of buying a freehold property on a new build (we r the first purchase) whilst there are quite restrictive covenants re building things planting things etc the covenants and elsewhere in the contract state that "if requested we will become director or secretary of the management company!!!" I understand being a member of the man company but can they force you to be a director/secretary and all the responsibility and liability this brings!!! I can't find such a demand being mentioned elsewhere on the net- it's is the only point that is a real risk of us pulling out. Any thoughts appreciated

  • #2
    Re: New build contract and covenants

    I live in a similar property - freehold with restrictive and positive covenants. I also served as a director but did this voluntarily. A requirement to serve is, in my view, pretty worrying.

    As a director of this type of management company, you are ultimately responsible for determining how the service charges are spent. In other words, your neighbours' money. And trust me on this, no matter what you do, no matter how wise or prudent you are, there will always be disagreement about how the money is spent and even resentment about neighbours having control over neighbours.

    If you simply want to live in peace in your own house, minding your own business, and co-existing in harmony with your neighbours, my advice to you is to run. Run now, while you can. If I had known what I was buying into, I would never have done it.

    I am sorry, Raenorthern, to sound so negative about this. Other people may have different experiences of living in such a community and may respond differently, but I can only speak from my own bitter experience.

    There is no such thing as a good neighbour where money is involved. Sorry.

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    • #3
      Re: New build contract and covenants

      Thanks for your reply - living with a management co doesn't worry me ive done it before but being forced to be a director does. Like u say it's onerous and you are liable even if a managent agent is employed. If they don't change it we will be running as you say

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      • #4
        Re: New build contract and covenants

        Sounds very sensible to make them change it before you fully commit yourselves to buying this house. Individual covenants and contracts on the estate where I live were changed by the builder to entice the first time buyers into proceeding, so you would not be asking for anything that hasn't already been done elsewhere. Good luck whatever you decide.
        Last edited by Jeannie D; 18-03-2012, 12:29 PM. Reason: typo!

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