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Hello,
We live in a mixed dwelling strata scheme in nsw. The strata scheme is made up of 4 terrace houses, 10 townhouses and two large apartment blocks. We share common back driveway. The apartments now need a Million dollar roof fix. Because we live in a terrace, we have to pay 3x what some of the apartments pay (due to being a larger lot). We receive no benefit from the new roof, but will need to pay $30,000 to fix it.
Is there anything equivalent to the VIC ‘benefit principle’, in nsw? So we could pay a fair share, rather than a larger share?
To pay off this large amount of money the scheme can either try to pay it off quickly or enter into an expensive bank loan. We’ve been told that we can’t choose to pay it off, if other people choose the loan. Is this true? We wouldn’t want to pay thousands more in interest payments too.
Thanks
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Section 87 of the act allows the Tribunal to order a variation of the amonts paid in levies:
1) The Tribunal may, on application, make either or both of the following orders if the Tribunal considers that any amount levied or proposed to be levied by way of contributions is inadequate or excessive or that the manner of payment of contributions is unreasonable— (a) an order for payment of contributions of a different amount, (b) an order for payment of contributions in a different manner.
Okay. the issue is, is it unreasonable for you to pay more for the repair of a roof in a building in which you don’t even live?
I’m going to leave that to any strata lawyers who may be reading this as I can see an argument both ways. For instance, why should the people on the ground floor pay a share of roof repairs too? That’s what you sign up for when you buy into strata.
But at least there’s an avenue for you to explore and it doesn’t have to be in conflict with the unit block dwellers. Even if they wanted you to pay less, unlikely though that may seem, they would have to go through the same process.
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.
I suspect that the purpose of section 87 is to make the total levies reasonable, not to vary individual levies relative to the total.
My understanding of strata is that proportions are fixed in the strata scheme and that is what you agree to when you buy. I expect the owner of the townhouse would be very happy if her roof needed replacing and the other owners payed most of the costs. No strata committee is going to vary levies on individuals unless there is a tribunal ruling or legal advice that they should.
A million on a roof seems expensive, but all building work is. Maybe looking at the quotes would be a good start.
No strata committee is going to vary levies on individuals unless there is a tribunal ruling or legal advice that they should.
As I suggested in my reply, the owners corp couldn’t vary levies without Tribunal approval even if they wanted to. And, of course, the committee can’t change levies at all (although they can recommend changes to the owners at a general meeting).
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.
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