Can lot owners refuse to pay a special levy introduced at the first meeting when the developer used a power of attorney clause to exercise their votes?
The power of attorney clause in our purchase contract states that, for the first year, the developer can exercise our voting rights. At the first meeting, a special levy for security fees was introduced to cover the remaining cost of the security company’s contract. The developer engaged this company during construction, and the security company owner is related to the developer.
Do lot owners have the grounds to refuse to pay this special levy for security?
This will depend on the terms of the power of attorney and several other issues. Legal advice is required.
This is all going to depend on the terms of the power of attorney itself and then representations made (or not made) about the likely expenses of the body corporate during the sales process and then in the disclosure documents themselves. There is no black and white answer to this one, but it is something that legal advice should be sought on.
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With more than 30 years’ experience in property, management rights and body corporate law, Frank is a beacon of knowledge and a renowned strata-industry expert. Known for his straight-shooting style and commercially driven advice, Frank cuts through the most challenging legal problems to deliver real-world solutions.
An active member of the strata community, Frank generously shares his time and experience to help educate the broader industry on all things strata law. He embraces his role as an industry leader and is committed to continued industry innovation and ensuring everyone in the strata sector has access to practical resources and solutions as they navigate through the strata maze.
He regularly presents to all industry segments and also speaks at Queensland Law Society events on strata law issues to other lawyers. Frank is a regular contributor to LookUpStrata.
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