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"Important NOTE!!!" Information Provided On This Website Is Intended For... "GENERAL INFORMATION
ONLY!!!" And Must Be Only Be Used Only As A "GUIDE!!!" It Must Not Be Used For Decision Making, Or
Be Used For Any Building Purposes Or Legal Proceedings. Refer To Our Policies On This Website.

Multi Unit Developments: What Are They!!! And, How
Are They Developed.

In simple terms, these projects that have several units, (apartments or single houses), with the distinction
that the unit owners are bound together in regards of running the management company, and maintaining
the overall structure of the project.

A developer comes in, builds various units with similar designs, designs the streets and layout of the entire project.

The developer asks people to buy the units. These owners are later given control of the overseeing Management Company.

Issues In Regards To Multi Unit Developments.

I. Litigation Issues.

As mentioned earlier the structure of many of the Multi-Unit Developments is that the unit owners (those
that own individual apartments, houses inside the unit) band together to from one overseeing company.

In many critics' eyes, (including lawyers and other interested parties) this structure has potential of
becoming both good and bad.

Good.

When everything is functioning, as it should, the parent companies are good overseers of the entire multi
unit project.

Here, unit owners are actively involved in the running of the company, which in turn ensures that things
inside the project are looking good.

In addition, it has been noted that the larger the number of units inside the development, the stronger the parent company is.

Bad.

This is more of a disadvantage than a bad quality about the overseeing parent company the unit-owners
put in place.

If the number of units is below ten, the cost of creating and maintain the management company really becomes unfeasible.

The cost of running the administrating body in most cases becomes a burden for the unit owners.

Possible solution to the above problem can be for the unit owners to take care of the common amenities.

They will not have to establish a company that will cost both time and money.

They can each contribute their allotted resources for the maintenances of things like street lighting, street cleaning, garbage collection services etc. (however, this depends on the laws of the land).

II. Sinking Funds Issue.

In principal, sinking funds is simply money that is collectively gathered through the parent company from
the unit owners in the multi development complex.

This money is then put into good use by taking care of common areas inside the complex and other developmental issue that might rise within the complex.

Complications begin to creep in when members start delaying payments or the management company misuses this money.

Critics view that in the long run, it is better for unit owners to have this fund, than to incur further costs
due to eventual wear and tear in the future.

III. Issue Of Developers Of The Projects.

Developers And Multi Unit Developments Cannot Be Separated.

Developer is the initiator of the management company. They can decide how much responsibility will be shouldered on the eventual unit owners.

They are the ones who plan and execute the design of the project thus, professional developers are
important for sustainable Multi-unit project development.

One scenario that can happen is a tug of war match for ownership of the Multi-Unit Development structure (between developers and unit owners).

The developer wants to sell all the units.

This means that they do not want to relinquish ownership control until this happens.

The unit owners, on the other hand, want to own the Management Company and their units.

For those units that are yet to be occupied, the current unit owners find themselves shouldering the cost of maintenance.

The developer usually charges some fee for this maintenance on these unit owners.

This might sour the relationship between these two parties.

IV. Management Company Unit Owner's Relations.

Perhaps everything is interconnected when it comes to Multi-Unit Developments.

The management company and the unit owners are interconnected, akin to the relationship between the government and its citizens.

The administration of the management company is made up of unit owners.

Their active participation (like active participation of citizens in their governments) increases the bond
between the two sides.

The thinking here is that by keeping and eye on the overseers of the units, monitoring of my own unit!!! and,
it's environs will also happen.'

Unit owners should not let the Management Company run things willy-nilly.

Conflicts are bound to appear, if this happens.

If the unit members are completely disinterested in the management company, Development and maintenance of the structure will begin to sharply decline.

The management company will loose its functionality Eventually the whole project stands to collapse (Like
A Failed State).

There Are Various Other Issues... Concerning Multi Unit Developments.

Thankfully, there are an equal number of solutions that can be employed.


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"Important NOTE!!!" Information Provided On This Website Is Intended For... "GENERAL INFORMATION
ONLY!!!" And Must Be Only Be Used Only As A "GUIDE!!!" It Must Not Be Used For Decision Making, Or
Be Used For Any Building Purposes Or Legal Proceedings. Refer To Our Policies On This Website.

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