Question: We’ve just bought a townhouse in NSW and have since received a special levy notice of $7000 to repair balconies. Surely this levy should go to the previous owners?
We recently bought a townhouse in NSW. We have since received a special levy notice of $7000 to repair balconies. We received the bill, but surely as this was agreed upon prior to settling on the property we should not be liable to pay? We were not informed by the strata management or consulted that these works were going ahead. Should this bill fall onto the previous owners?
Answer: Generally, the obligation to pay levies falls with the owner at the time the levies are due for payment.
It is difficult to comment specifically without knowing the dates and circumstances of the raising of the special levy. Generally, the obligation to pay levies falls with the owner at the time the levies are due for payment. An adjustment is made at settlement where levies have been paid in advance and sometimes an agreement is made between the buyer and seller regarding the obligation to pay upcoming special levies.
If no agreement was made, I think it would be difficult to claim these levies from the previous owner. The amount and reason for the special levy would have been shown in the relevant general meeting minutes when it was raised. I’m not sure whether you obtained a strata records inspection report for this property but you would expect it to show current special levies if they had been raised prior to the report being prepared. If you would like some more specific information on this issue I suggest you contact your conveyancer or feel free to contact us.
This post appears in the July 2021 edition of The NSW Strata Magazine.
Michael Ferrier Eyeon Property Inspections E: michael.ferrier@eyeon.com.au P: 02 9260 5510