Can the levies be changed without WW3?

I don’t know about avoiding WW3 – some owners are going to suffer financially while others benefit – but there is certainly a mechanism in  place just for circumstances as yours.

The easiest way to do it is through unanimous agreement by all lot owners … meanwhile, back in the real world, you can apply to the CTTT for a re-allocation of UEs on the basis that they were not fairly distributed when the strata was set up.  You will require a valuation of each of the lots although there is a certain amount of discretion allowed the CTTT adjudicator if, for instance, some owners refuse to allow their apartments to be valued (for obvious reasons).

What you need to do is get together with other owners who are being overcharged and talk to a strata lawyer and/or a valuer about the next step.  You may even be able to do this as an owners corporation – after all, you have all the voting power.

I’m not sure about the clauses allowing you recover overpayents as a debt – I think that is only when the strata plan is less than six years old and the developer has used unfeasibly low levies to attract big money buyers.

Even so, it sounds like it’s worth the effort and the levies losers should be grateful for the free ride they have had so far.

This is what the strata Act says – the Tribunal referred to is the CTTT:

183   Order for reallocation of unit entitlements

(1) Tribunal may make order allocating unit entitlements
The Tribunal may make an order allocating unit entitlements among the lots that are subject to a strata scheme in the manner specified in the order.

(2) Circumstances in which order may be made
An order may be made only if the Tribunal considers that the allocation of unit entitlements among the lots:

(a)  was unreasonable when the strata plan was registered or when a strata plan of subdivision was registered, or

(a1)  was unreasonable when a revised schedule of unit entitlements was lodged at the conclusion of a development scheme, or

(b)  became unreasonable because of a change in the permitted land use, being a change (for example, because of a rezoning) in the ways in which the whole or any part of the parcel could lawfully be used, whether with or without development consent.

(3) Matters to be taken into consideration
In making a determination under this section, the Tribunal is to have regard to the respective values of the lots and (if a strata development contract is in force in relation to the strata scheme) to such other matters as the Tribunal considers relevant.

(4) Application to be accompanied by valuation
An application for an order must be accompanied by a certificate specifying the valuation, at the relevant time of registration or immediately after the change in the permitted land use, of each of the lots to which the application relates.

(5) Qualifications of person making valuation
The certificate must have been given by a registered valuer under the Valuers Act 2003 authorised under that Act to make such a valuation (a qualified valuer).

(6) Ancillary orders that may be made if original valuation unsatisfactory
The Tribunal may, if it makes an order allocating unit entitlements that were not allocated in accordance with a valuation of a qualified valuer and, in the opinion of the Tribunal, were allocated unreasonably by a developer, also order:

(a)  the payment by the developer to the applicant for the order of the costs incurred by the applicant, including fees and expenses reasonably incurred in obtaining the valuation and the giving of evidence by a qualified valuer, and

(b)  the payment by the developer to any or all of the following people of such amounts as may be assessed by the Tribunal to represent any overpayments (due to the unreasonable allocation) for which liability arose not earlier than 6 years before the date of the order:

the lessor of a leasehold strata scheme

the owners corporation

the owners of lots.

(7) Recovery of amounts awarded
An amount ordered to be paid under this section may be recovered as a debt.

(8) Who may make application?
An application for an order under this section may be made only by:

(a)  an owner of a lot (whether or not a development lot) within the parcel, or

(b)  the owners corporation, or

(c)  the lessor of a leasehold strata scheme, or

(d)  the local council, or by any other public authority or statutory body representing the Crown, being an authority or body that is empowered to impose a rate, tax or other charge by reference to a valuation of land.

Do some home work on the Strata Lawyer you choose to ensure they have the particular expertise on this issue, same goes with the valuer. If you need somewhere to start we can give you some firms names. However get some legal advice first as one of the questions you want answered is can you get your costs back as well in seeking the order from the CTTT, if you need to go it alone. The valuer will be able to do the valuations without access to the units, it is based on size views and local market vales (resent sales etc). Hope this helps.

Chris Mo’ane GMD Integrated Consultancy Group

@JimmyT said:

I don’t know about avoiding WW3 – some owners are going to suffer financially while others benefit – but there is certainly a mechanism in  place just for circumstances as yours.

The easiest way to do it is through unanimous agreement by all lot owners … meanwhile, back in the real world, you can apply to the CTTT for a re-allocation of UEs on the basis that they were not fairly distributed when the strata was set up.  You will require a valuation of each of the lots although there is a certain amount of discretion allowed the CTTT adjudicator if, for instance, some owners refuse to allow their apartments to be valued (for obvious reasons).

What you need to do is get together with other owners who are being overcharged and talk to a strata lawyer and/or a valuer about the next step.  You may even be able to do this as an owners corporation – after all, you have all the voting power.

I’m not sure about the clauses allowing you recover overpayents as a debt – I think that is only when the strata plan is less than six years old and the developer has used unfeasibly low levies to attract big money buyers.

Even so, it sounds like it’s worth the effort and the levies losers should be grateful for the free ride they have had so far.

This is what the strata Act says – the Tribunal referred to is the CTTT:

183   Order for reallocation of unit entitlements

(1) Tribunal may make order allocating unit entitlements
The Tribunal may make an order allocating unit entitlements among the lots that are subject to a strata scheme in the manner specified in the order.

(2) Circumstances in which order may be made
An order may be made only if the Tribunal considers that the allocation of unit entitlements among the lots:

(a)  was unreasonable when the strata plan was registered or when a strata plan of subdivision was registered, or

(a1)  was unreasonable when a revised schedule of unit entitlements was lodged at the conclusion of a development scheme, or

(b)  became unreasonable because of a change in the permitted land use, being a change (for example, because of a rezoning) in the ways in which the whole or any part of the parcel could lawfully be used, whether with or without development consent.

(3) Matters to be taken into consideration
In making a determination under this section, the Tribunal is to have regard to the respective values of the lots and (if a strata development contract is in force in relation to the strata scheme) to such other matters as the Tribunal considers relevant.

(4) Application to be accompanied by valuation
An application for an order must be accompanied by a certificate specifying the valuation, at the relevant time of registration or immediately after the change in the permitted land use, of each of the lots to which the application relates.

(5) Qualifications of person making valuation
The certificate must have been given by a registered valuer under the Valuers Act 2003 authorised under that Act to make such a valuation (a qualified valuer).

(6) Ancillary orders that may be made if original valuation unsatisfactory
The Tribunal may, if it makes an order allocating unit entitlements that were not allocated in accordance with a valuation of a qualified valuer and, in the opinion of the Tribunal, were allocated unreasonably by a developer, also order:

(a)  the payment by the developer to the applicant for the order of the costs incurred by the applicant, including fees and expenses reasonably incurred in obtaining the valuation and the giving of evidence by a qualified valuer, and

(b)  the payment by the developer to any or all of the following people of such amounts as may be assessed by the Tribunal to represent any overpayments (due to the unreasonable allocation) for which liability arose not earlier than 6 years before the date of the order:

the lessor of a leasehold strata scheme

the owners corporation

the owners of lots.

(7) Recovery of amounts awarded
An amount ordered to be paid under this section may be recovered as a debt.

(8) Who may make application?
An application for an order under this section may be made only by:

(a)  an owner of a lot (whether or not a development lot) within the parcel, or

(b)  the owners corporation, or

(c)  the lessor of a leasehold strata scheme, or

(d)  the local council, or by any other public authority or statutory body representing the Crown, being an authority or body that is empowered to impose a rate, tax or other charge by reference to a valuation of land.

Something that’s just occurred to me – is this complex really strata or is it Company Title?  If it’s the latter, then a whole different set of rules pertain.  If it’s strata, you will also need to look at when the strata plan was registered, by whom and under what basis.  These buildings are all pre-1940.  Strata law didn’t exist before 1962 (although many Company Title buildings have changed to strata since then).