› Flat Chat Strata Forum › The Professionals › Unpaid levies › Current Page
We live in a two unit strata scheme. The scheme has a CTTT order to undertake long overdue repairs. We were the successful applicants – we are also the minority UE holders. We asked the CTTT for a compulsory strata manager with all the powers of the OC and the executive with orders to undertake the repairs. We were successful.
The other owners are in arrears in their quarterly levies and the SM has started debt collection procedures.
The SM has been ordered by the CTTT on our application to raise a very large special levy to undertake the repair orders. We are happy to pay our share.
However, the SM has told us that in the event the other owners do not pay their share, that he will raise another special levy effectively making us pay twice. We are talking about a six figure sum doubled in a two unit scheme! The SM further added that if we do not pay our share again that not only will he bankrupt the other owners but us as well.
We were left shocked by this statement. It has caused us considerable distress and sleepless nights. We are an aged couple and full pensioners one of whom is an octogenarian with heart disease. Our home is our only asset. We face being made homeless.
We are unable to pay twice in the event that the other owners do not pay their share of the six figure special levy.
We are the successful applicants – the “good guys” in this matter.
This is extremely inequitable. The SM is using his unlimited power in an intimidatory and heavy handed manner. It may constitute a “fraud of the minority”.
When he was asked why he is doing this the SM said that “he had to fulfill the orders of the CTTT”.
The CTTT is not a police force. The CTTT will only take action if we the successful applicants lodged a complaint that the orders have not been completed within the time frame.
We have sought an alternative source of funding through a strata finance company. They are prepared to advance the OC sufficient funds to complete the orders. The effect of this would be that the orders could be completed within the ordered time frame and without delays. The SM could then pursue the other owners who are in arrears. We have tried to contact the SM by phone and email to put this alternative funding proposal to him. He does not respond.
The majority of strata schemes in NSW are two unit schemes. It would seem that owners in these schemes have a real risk of losing their homes in situations such as this.
Owners, potential purchasers and mortgagees should be aware of the extra risks involved in buying into two-unit schemes as detailed above.
We are completely at the mercy of this SM and have the “Sword of Damocles” hanging over us, ruining our health and quality of life.
Nobody, let alone aged pensioners, should be subjected to this.
We seek your thoughts and advice and what to do.