This article discusses developer first year levy payment obligations and confirms that developers must pay levies like any other owner.
Question: Our Body Corporate Manager has advised that the developer is not required to pay the levies for the first 12 months. Is this true?
I purchased a new apartment block.
The developer has decided to retain the commercial lot (paid admin/sinking levies) but he also has retained and is renting out another unit and has for over 6 months, however has not paid the admin/sinking levies.
Our Body Corporate Manager has advised that the developer is not required to pay the levies for the first 12 months. Is this true?
Answer: The obligation to pay levies comes from the ownership of a lot. There is literally no way to exempt anyone from paying them at all. If someone doesn’t pay the other owners have to carry an increased levy burden, which is simply not fair!
This post appears in Strata News #470.
Frank Higginson Redchip Strata Law E: FrankH@redchip.com.au P: 07 3193 0500