› Flat Chat Strata Forum › Levies and Unit Entitlements › Does the winner in an NCAT battle have to share the losing EC’s costs? › Current Page
The simple answer, in NSW, is no.
If that action was brought under Chapter 5 of the Act which relates to disputes and orders by the tribunal, the Owners Corp can’t pay costs out of the sinking or admin funds and must collect a special levy which excludes the successful party
This is what section 230 says. There may be other conditions in the order, or is may have been raised under a different part of the Act (unlikely) but this is the basic rule.
230 Restrictions on owners corporation levying contributions for expenses
(1) An owners corporation cannot, in respect of its costs and expenses in proceedings brought by or against it under Chapter 5, levy a contribution on another party who is successful in the proceedings.
(2) An owners corporation that is unsuccessful in proceedings brought by or against it under Chapter 5 cannot pay any part of its costs and expenses in the proceedings from its administrative fund or sinking fund, but may make a levy for the purpose.