Commercial/Residential Mixed Strata Levies

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25/04/2011 at 4:21 pm #7348
Anonymous
Our highrise building committee have voted to double the levies so that they can pay for new windows to be installed in the residential section of the strata. We own a small commercial lot and are being charged this same levy even though it is only for the residential windows. Is this legal as it seems to me that it should be a residential only levy. Does anyone have experience with this?
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27/04/2011 at 11:14 am #12714
Anonymous
Hi Rider,

It would require a proper evaluation of all the circumstances surrounding the levy in order to provide a proper legal opinion, however this is a brief overview of the issues which probably arise here.

First of all the Executive Committee (the EC) cannot determine the levy contributions, this can only be done by resolution at General Meeting (GM). The EC can put a motion to increase levies before a General Meeting but they cannot determine those levies.

In the event that the levies were passed at GM then they may well be valid. An Owners Corporation (OC) is responsible for the maintenance of the common areas of a strata plan, regardless of whether these common areas are of more benefit to certain owners (or classes of owner). The OC has an obligation to keep the common property in good condition. If the replacement of these windows is an act of maintenance where the windows are being installed to replace windows which are falling into disrepair then this will likely be a valid levy.

However, if instead the new windows are an alteration or improvement of the common property to benefit a particular class of owner then it is arguable that the levies would be invalid.

Kind regards,

Daniel Dimock

Lawyer
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TEYS Lawyers
The Strata Law Experts
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daniel@teyslawyers.com.au

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29/04/2011 at 2:11 pm #12727
Anonymous
any comment Jimmy??
29/04/2011 at 2:29 pm #12729
Jimmy-T
Keymaster
I'm going with Daniel's closing comment which suggests that this may be a benefit to the majority at the (partial) expense of a minority who don't gain any appreciable benefit from it. I think you might have a good case for applying to the CTTT for an adjudication under section 149

149   Order for variation of contributions levied or manner of payment of contributions

(1) An Adjudicator may make either or both of the following orders if the Adjudicator considers that any amount levied or proposed to be levied by way of contributions is inadequate or excessive or that the manner of payment of contributions is unreasonable:

(a)  an order for payment of contributions of a different amount,

(b)  an order for payment of contributions in a different manner.

However, it could be argued that the integrity of the windows plays an important role in protecting the structural integrity of the building as a whole.

I hasten to add I am not a lawyer so I'd be talking to one first before I did anything, but maybe you should just insist on having your windows done at the same time so at least you're getting some benefit from it.

JimmyT

The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.