Question: My strata has major capital works to carry out around the complex. At the general meeting, we opted for the loan although we have sufficient funds to finance repairs ourselves. Can our Strata company can impose a loan on me?
To ensure compliance with legislation, my strata company took a strata loan to finance major capital works around the complex. At the general meeting, we opted for the loan although we have sufficient funds to finance repairs ourselves.
The strata manager sent us an invoice requesting us to pay instalments for the strata loan. When I asked the strata manager to provide me with an itemised invoice, I was advised that is too hard (lots of accounting) and the Council’s approval was needed. Please advise if Strata company can impose a loan on me.
Answer: The Strata Titles Act does allow a Strata Company to take out a loan provided it has been motioned and passed i.e. has been agreed.
The Strata Titles Act does allow a Strata Company to take out a loan provided it has been motioned and passed i.e. has been agreed. It is noted in your question that in General Meeting it was agreed to opt for the loan, and if a majority of Owners agreed then yes it is passed and the Strata Company can then take out the loan. In regards to the invoice you are being sent it would have also been agreed at the meeting as to the levy amounts and dates.
This post appears in Strata News #616.
Jamie Horner
Empire Estate Agents
E: JHorner@empireestateagents.com
P: (08) 9262 0400
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