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This website is fantastic, informative, and I wish I had seen it sooner. Ok . Here goes.
If a strata plan has not identified balconies as common property and the owners corporation is demanding those without balconies pay extradoniary fees ( not for OHS resons) but to increase the resale price of indivual apartements ( with balconies) in there any legal recourse in this matter?
NSW strata law is unclear on this one… only to say that repairs for OHS a neccesary, must be like for like ( similar price to orginal balconies)
any advice?
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Hi Dee
Broadly speaking, owners corporations are required to estimate the moneys required to meet the expenses of the administrative and sinking funds. The total amount required by each of the funds is then divided by the aggregate unit entitlement of the strata scheme. This amount is the contribution each owner must make for each unit entitlement the owner has (section 78(2) of the Strata Schemes Management Act). This approach cannot be varied even if there is a unanimous resolution to alter this provision although there are some very limited exceptions to section 78(2).
In the event that an owners corporation seeks to determine fees in accordance with some other criteria, you may be able to obtain an order from an adjudicator rendering invalid such a fee (section 138 of the Strata Schemes Management Act).
Finally, section 75 of the Strata Schemes Management Act states that the executive committee has no power to decide the contribution payable by each owner for the administrative or sinking fund (ie the power resides in the owners corporation as a whole).
The above process applies whether you mean fees for the administrative fund or sinking fund or special levies.
Let me know if you have any questions.
Regards
Chris Kerin
Senior Lawyer
TEYS Lawyers
The Strata Law Experts
02 9562 6500
Suite 73, Lower Deck
Jones Bay Wharf
26-32 Pirrama Rd
Pyrmont NSW 2009Don't miss our next
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