I had not heard of and do not accept as correct the quoted take on the section. If it is correct, no lot owner would ever pay a quarterley levy until a judgment was obtained against them for each one. The same logic would apply to unpaid Council rates, water rates and land tax.
I can only draw to attention and rely on the specific provision in the Act.
The Standard NSW form of Contract for the sale and purchase of land – 2022 edition provides for adjustments of outgoings to be made between the vendor and the purchaser on the adjustment date (usually the date of completion of the contract for sale) in these terms:
“14 Adjustments
14.1 Normally, the vendor is entitled to the rents and profits and will be liable for all rates, water, sewerage and drainage service and usage charges, land tax, levies and all other periodic outgoings up to and including the adjustment date after which the purchaser will be entitled and liable.”
Make certain that the unpaid levies are clearly disclosed in the strata information certificate issued by the managing agent on behalf of the OC under section 184 of the Act. Then, no purchaser (or his solicitor or conveyancer) is likely to expose himself to the risk of being liable to pay a levy left upaid by the vendor by faiing to ensure that this obligation is adjusted between the parties on completion.
If a sale is in the air, the purchaser and his solicitor or conveyancer are the OC’s greatest allies and best debt collectors.