Firm’s right to fix property service charges upheld
ALAGOS High Court, Ikeja has held that a property management company, CMB Building Maintenance and Investment Company Limited, had a right to fix service and reticulation charges for homeowners in Pearl Garden Estate situated at Sangotedo Village in EtiOsa Local Council of the state.
Justice Mufutau Olokoba made the declaration while delivering judgment in a suit filed by some of the homeowners against CMB ( property and the estate management agents) and Oyetubo Jokotade Estate Resource Limited ( previous landowners).
Four homeowners in the estate, Francis Adesuyi, Felix Obiakor, Martin Ajayi- Obe and Peter Afenotan filed the suit on behalf of themselves and others within the Pearl
Garden Estate.
The plaintiffs had, among other things, prayed the court to declare the arbitrary reticulation and service charges by the estate management illegal.
But in his judgment, Justice Olokoba upheld the right of the estate management to fix both charges, saying having agreed to pay for the charges of maintaining the estate, the homeowners could not resile from the agreement.
The court, however, held that there must be an agreement between the estate management company and homeowners over the actual amount to be paid for the services.
The judge observed: “No doubt, the defendant is entitled to collect service charge and the residents/ homeowners are bound to pay service charge as stated in the Sale and Management Agreement.”