This article about lot allocations and levies in VIC has been provided by Joel Chamberlain, Horizon Strata Management Group.
Question: What role does the Victorian strata manager play in ensuring lot allocations are correct for the purposes of issuing levies?
Answer: It is an Owners Corporations responsibility to ensure levies are issued in accordance with Lot Liability.
A great question, and one that has a few parts which link together. It is an Owners Corporations responsibility to ensure levies are issued in accordance with Lot Liability. Sec 23 of The Owners Corporation Act 2006 covers this:
23. Owners corporation may levy fees
- An owners corporation may set annual fees to cover—
- general administration; and
- maintenance and repairs; and
- insurance; and
- other recurrent obligations of the owners corporation.
- If the owners corporation has an approved maintenance plan, the annual fees must include fees that are—
- designated for the purpose of the maintenance plan; and
- sufficient to allow the maintenance plan to be implemented.
- The fees set must be based on lot liability.
- An owners corporation is to be managed by or under the direction of the lot owners.
- Subject to subsection (3), an owners corporation may, by instrument or by resolution at a general meeting, delegate any power or function of the owners corporation to—
- the committee of the owners corporation;
- the manager of the owners corporation;
- a lot owner;
- the chairperson of the owners corporation;
- the secretary of the owners corporation;
- an employee of the owners corporation.
- An owners corporation must not delegate any of the following powers or functions under
- a power or function that requires a unanimous resolution, a special resolution or a resolution at a general meeting;
- the power of delegation under that subsection.
However, most Owners Corporation’s employ a Manager to carry out this function, and delegate the authority to do so. This is completed under Sec 11.
11. Management of owners corporation and power to delegate
By delegating the power to raise fees, the Manager is bound to do so in accordance with the requirements conferred on the Owners Corporation under Sec 23.
To provide weight to these obligations, both the Manager and Owners Corporation have duties under the Act (Sec 5 and 122). These are to act honestly and in good faith and they must exercise due care and diligence when carrying out their role(s).
The best way to ensure that the lot liabilities are correct is to obtain an up to date Owners Corporation Search Report from Landata Victoria. This is a simple exercise, taking around five minutes and costing no more than ten or fifteen dollars.
The Search Report is often grouped with the Plan of Subdivision. These documents are available to anyone willing to pay the small fee.
Once this document has been obtained, lot liabilities can be confirmed by the Manager.
Remember to ensure you don’t confuse lot liability with lot entitlement. These are often the same value but are applied to different circumstances. When raising fees, as stated earlier, they are done so based on lot liability.
If you have a query about the allocation of fees, your levies or lot liability, it is recommended to discuss this with your Manager.
This post appears in Strata News #352
Have a question about lot allocation and levies or something to add to the article? Leave a comment below.Embed
- VIC: Q&A Setting Up a Maintenance Plan and Deciding on a Budget
- VIC: Effective Debt Recovery through Payment Plans
- VIC: What’s yours and what‘s common property?
Looking for strata information concerning your state? For state-specific strata information, take a look here.