Analyzing the Maintenance Charge Clause in Jolly Harbour Land Transfer Covenants

A Comprehensive Guide to Your Rights and CDAL's Obligations

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Below is a point-by-point breakdown of the key language governing the "monthly maintenance charge" for Jolly Harbour freeholders. It integrates both factual findings from prior court rulings (e.g., Coleman) and foundational legal principles under Antiguan and British law—particularly regarding what qualifies as permissible "services" and how those costs must be audited, reasonable, and free from negligence-related or mismanagement overheads.

Key Points:

  • Direct Benefit Required: Charges must directly benefit each specific parcel
  • Audited Expenses Only: Fee increases must be based on properly audited common expenses
  • No Negligence Costs: Freeholders cannot be charged for repairs needed due to CDAL's past neglect
  • Service-Based Charges: Only legitimate services, not expansions or developer overhead, can be charged
  • Market Rate Standard: Charges must align with typical market rates for comparable services

Land Transfer Excerpt:

"The Transferee shall pay the monthly maintenance charge … which is now levied by the Transferor and which is levied for and expended upon the services provided to and for the benefit of the above-mentioned parcel, which services are not limited to security, grounds maintenance, infrastructural maintenance, sewage, lighting and liability and risk insurance for common areas and the administration thereof. The said charge may increase or decrease from time to time having regard to the audited common expenses."

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