Question: Who is entitled to the refund of the special levy for cancelled renovation work – the current owner of the lot or the previous owner who paid the levy?
Our owners corporation raised a special levy to renovate common property. The work was cancelled. At the EGM, it was decided that the levy amount would be refunded to each lot owner. Over this period, a lot was sold. Can the new owner of that lot claim the refund, or does the money go to the previous owner?
Answer: If these levies are being refunded by way of distribution of surplus funds, current owners will be refunded in accordance with their unit entitlements.
If these levies are being refunded by way of distribution of surplus funds, current owners (i.e. each person for the time being recorded in the Register and when the refund is being processed) will be refunded in accordance with their unit entitlements. As far as we are aware, unlike the scenario where there are unpaid contributions by a former owner where the current and new owners are both jointly and severally liable, no such mechanism exists for this situation.
This post appears in the February 2025 edition of The NSW Strata Magazine.
Leanne Habib
Premium Strata
E: info@premiumstrata.com.au
P: 02 9281 6440
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