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Brendan's Story: Management Company Arrears

Limerick | Selling an Apartment

Brendan had owned his apartment in Limerick for eight years. When he decided to sell, everything seemed straightforward at first — he had a buyer lined up and both sides had agreed a price. He appointed a solicitor to handle the legal side of things, as you do when selling a property in Ireland.

A few weeks in, Brendan's solicitor flagged something that made his heart sink: the management company for the apartment building had arrears on his account. These were charges for building maintenance and common area upkeep that had accumulated over time. The buyer's solicitor, quite reasonably, refused to let the sale close until the arrears were cleared. A buyer won't knowingly inherit debts or disputes, and the solicitor was protecting their client's interests. Brendan suddenly faced a bill he hadn't expected, just as he thought his sale was done and dusted.

The good news was that his solicitor worked with him to find a practical solution. The arrears were cleared directly from the sale proceeds at closing — money from the buyer went to the seller (Brendan), but a portion was held back to settle the management company debt before it reached Brendan's account. Everyone walked away satisfied. Brendan got his sale completed, the buyer took on a clean property with no hidden liabilities, and the management company was paid.

It was a reminder that when selling an apartment, these management company debts are a real thing and they need clearing before the sale finishes. Brendan's solicitor catching it early meant there were no last-minute shocks or collapsed deals.

What the Law Says

In Ireland, management company charges and service charges are a legal obligation for apartment owners. If those charges fall into arrears, the debt stays attached to the property — not just the person. When you sell, the buyer's solicitor will search the property records and will find any arrears owed. The buyer is entitled to insist those arrears are cleared before completion. Your solicitor can arrange for the debt to be paid from your sale proceeds, so it doesn't come out of your own pocket after the sale completes, but it must be settled one way or another.

⏰ Time Limits Matter

Arrears investigations and clearances take time. Once a buyer's solicitor discovers management company arrears, you typically have a reasonable window to arrange payment before the sale can close — usually a few weeks. The longer you leave it, the closer you get to your agreed closing date, and the more pressure builds on all sides. If you're selling an apartment, get your management company arrears checked early in the process, before a buyer is even lined up. It's far simpler to clear debts on your own timeline than to scramble at the last minute.

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