12.— (1) Where in respect of a multi-unit development the development stage has not ended and either section 3(7) or 4(2) applies, and the owners of 60 per cent of the residential units in a multi-unit development or a relevant part of the development request the owner of every beneficial interest in the common areas concerned and the reversion in the residential units which is reserved by virtue of those provisions to do so, such owner shall, subject to subsection (2), or unless good and sufficient cause is shown, as soon as practicable thereafter make a statutory declaration for the benefit of the owners’ management company that as respects the development or the relevant part of the development concerned the beneficial interest concerned stands transferred to the owners’ management company concerned, and the effect of the making of such declaration is that the beneficial interest and legal interest in the common areas concerned and in the reversion in the residential units concerned stand merged.

(2) A declaration under subsection (1) shall be made with the consent of each mortgagee or owner of a charge in relation to the interest of the beneficial owner of the common areas concerned or reversion concerned which consent shall not be unreasonably withheld.

(3) Consent under subsection (2) shall not be treated as being unreasonably withheld where the mortgagee or owner of the charge makes the giving of such consent subject to a condition that the developer’s interest in any residential unit in the development which remains unsold be made subject to the granting of a mortgage or charge in favour of the mortgagee or owner of the charge.

(4) For the purposes of subsection (1) good and sufficient cause includes the reason that to do so would interfere in a material manner with the completion of the entire multi-unit development and that the interference could not be removed, overcome or resolved in any other effective manner than by the beneficial interest in the development or relevant part of the development continuing to be retained by the developer.

(5) Where the unit owners in the multi-unit development or a relevant part of the development do not accept that good and sufficient cause has been shown as to why a declaration should not be made under subsection (1) the owners concerned may make application to the Circuit Court under section 24 for an order directing that a declaration be made as respects the development or part of the development in respect of which the request was made under subsection (1) or such other part of the development as the Court considers appropriate.