This article discusses who is responsible for strata levies owing before purchase, explaining that unpaid levy debts transfer to the new owner and are usually addressed during settlement.
Question: I purchased my unit at the end of April. My strata manager is claiming I am overdue for a levy that was due a month prior to ownership. During the sale process, there was no mention of any levies owing. Am I responsible for this levy?
Answer: In strata properties, the strata levy debt follows the owner.
I can understand your worry and distress.
In strata properties, the strata levy debt follows the owner. That means when you purchase a strata property, any outstanding debt must be paid by the new owner.
Typically, the vendor pays the levies due at settlement, but if not, the conveyancer or settlement agent will distribute it between the vendor and the purchaser. The settlement agent will also include this amount in the financial settlement distribution.
It’s not the responsibility of the strata company or its managers to keep track of who paid what and when. They only receive funds and collect debts.
To resolve the issue, check your financial breakdown itemisation to see if this was included. If not, contact your settlement agent to clarify whether this is an oversight or error in the settlement or if you are responsible for this levy.
I am confident that this can be easily resolved with more information from your settlement agent.
This post appears in Strata News #632.
Jordan Dinga Abode Strata E: abode@abodestrata.com.au P: 08 9368 2221