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Hi
Can anyone inform me whether an owner has to pay a Special Levy of $175,000 passed at the last EGM before the case is heard at NCAT??(NSW).
Owners have received a ‘Notice of Levy ‘ consisting of the Standard Levy plus the Special Levy which is payable by November 1 or 10% simple interest will apply to the outstanding debt. In my case this will be on $13,900 UE 8.
I have paid the standard levy, however 1/3 of owners applied for Mediation to settle a dispute over the total cost of this cosmetic capital works.
The Strata Committee held a meeting and decided not to attend Mediation which was scheduled for the 24 October. Our application to NCAT was received on Friday 20 but the levy is payable by the end of the month.
What happens here as we don’t think we should be subjected to debt collectors or interest penalties until NCAT has heard our arguments and we have the chance to exercise our fundamental right to challenge the imposition of such a large Levy which is purely for aesthetic reasons ie non structural
Some works we agree should go ahead but spending $65,000 to re render a small wall which is neither structural and was listed as the lowest priority by SPMA engineers on their report is ridiculous especially when we now have holes appearing in the yard of owners courtyard and water ingress in brick walls that should take precedence. We have $30,000 in the Capital Works Fund.
If we pay the Levy contracts for remediation works will be signed however if NCAT at some stage later decides in our favour we would have to withdraw or may have to vary the contract and this may mean we are in breach of the contract??
Also does anyone know what happens with the debt collection process and time line? Do we have time to delay until an outcome is reached by NCAT?
Neither Fair Trading or the Mediator had an answer except to pay the interest…
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You really want to avoid a situatuin whereby people who object to the levy lose their right to vote in future becasue they haven’t paid it.
I strongly recommend you seek an interim order at NCAT (under section 231) to hold the payment date until four weeks after the NCAT decision has been handed down or the result of an appeal is heard.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
This post is NOT pointing a finger at swoo
I see time and time again where owners take no interest in the workings of their ‘strata’ ( sorry jimmy). Clearly the special levy was passed by a majority of those I attendance ( or by proxy). Where were the vocal minority that is now protesting the levy.
I am probably preaching to the converted ( the readers of flat chat), but please get involved with your building, even if it is to go to the AGM. Then surprises like swoo has received are brought to owners attention early.
In my daughters building of of 15 lots, they had 2 attend the AGM. My daugyter, an owner for just 3 months was elected onto the committe and then appointed to all three positions. Fortunately she has been schooled well by me in strata and the building has a hood SM.
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