This article is about strata levies and maintenance in NSW staged developments.
Question: A complex includes two staged developments under the one title. Stage 1 owners feel neglected due to the use of their strata levies for Stage 2 expenses. Owners have received notice of a special levy. Are they obligation to pay it?
Our complex includes two stages under the one title. We live in a Stage 1. Our levies are being used to pay for expenses in Stage 2. We feel like our area of the complex is being neglected.
We’ve also received notice of a special levy. We live on the pension and have limited funds. Where do we stand legally as this is causing us stress. Can we refuse to pay?
Answer: All owners are members of the owners corporation and are responsible for the repair and maintenance of the common property.
No, you cannot refuse to pay your levies.
In a strata scheme, regardless of whether it is staged development, there is only one owners corporation and the owners corporation is required to repair and maintain the common property. Levies used to pay for repair and maintenance of the common property can only be struck in accordance with the owners’ respective unit entitlements.
All owners are members of the owners corporation and are responsible for the repair and maintenance of the common property, funded through their levies. If the common property in stage 2 of the development needs repair, all owners regardless in which stage they own, are responsible to contribute through their levies.
If a stage of the development or any part of the common property is being neglected by a failure to repair or maintaining it, the owners corporation is in breach of Section 106 of the Strata Schemes Management Act 2015. You will need to convince the owner corporation to comply with this statutory duty. If you cannot convince them, you will need to compel them to comply with their duty through mediation at the Office of Fair Trading and if mediation does not resolve the issue by seeking orders through the NSW Civil and Administrative Tribunal.
Matthew Jenkins
Bannermans Lawyers
E: [email protected]
P: 02 9929 0226
This post appears in the October 2024 edition of The NSW Strata Magazine.
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Read next:
- NSW: Q&A Special Levies, Levy Payments and Overdue Levies
- NSW: Q&A What is an unfinancial lot owner and can they vote?
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