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  • #9975
    HappyNow
    Flatchatter

      Is this legal?

      Their stance is that they state the legislation says that the onus is actually on the owner to pay their levies when they become due.  There is no requirement under the legislation for us to send levy notices/invoice.

      As this apartment is leased, we instructed the Strata Manager to send the levy notice to the Agent.  They did not due this and when questioned, stated the above.  My Agent advised them as they are paying monies from a Trust Account that they must have an invoice.

      Can someone advise if this is legal?  It seems a good way for a Strata Manager to make some extra money should they be inclined!

      Appreciate feedback.  Thanks

    Viewing 6 replies - 1 through 6 (of 6 total)
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    • #23319
      Jimmy-T
      Keymaster

        I am compelled to offer you one of the four gems of philosophy by which I try to live my strata life: Never attribute to malice anything that can just as easily be ascribed to stupidity.

        Your strata manager has a pothole in their invoicing procedures and you have fallen foul of it.  A polite letter asking for a refund and a new system that is less likely to trip you up, should be enough (if you aren’t already at daggers drawn).

        If you are, what do you really want?  Your money back? To make a point? Or an easy life. One and three are achievable. No 2, less so, but you could say that you will be writing to other owners recommending that they find a new strata manager at the first possible opportunity. 

        That said, remember the five favourite words in legal circles:  “It’s a matter of principle.”

        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.
        #23320
        DaveB
        Flatchatter

          I presume the amount of $25 was interest charges on the unpaid levy.  It doesn’t end up in the Strata Manager’s pocket but goes to the Owners Corporation funds. 

          You can of course direct the Strata Manager to send the account to your agent, but as an owner you are obliged to see that payment is made on time.  Your Strata Manager is correct, there is technically no requirement to send accounts.

          However it is not good practice for an agent to miss out on sending accounts or to delay them.

          If this amount was interest then the Act is very specific about how relief may be granted to an owner from imposed interest charges.  It requires a Special Resolution at a General Meeting to allow this, in other words it’s beyond the powers of either the Strata Manager or Executive Committee to provide refunds.

          #23322
          Marvin
          Flatchatter

            The agreement between your strata manager and the owners corp (a legal document) spells out the SM’s obligations.  Typically the services include sending out a number of levy notices each year.  Check the agreement.  Most likely an admin foulup on their end, which they are trying to hide by quoting “the law”.  

            #23323
            HappyNow
            Flatchatter
            Chat-starter

              Thanks Jimmy T

              I am negative gearing the apartment so no skin off my nose as I claim it back on tax. 

              My query is really the fact the Strata Manager told my agent that they are not obligated to provide an invoice for payment (according to legislation).   That does not seem right to me especially as the agent is paying on my behalf out of their trust account. I wonder what legislation the Strata Manager may referring to?  Would appreciate knowing if there is such a legislation.

              (My agent has now had a heads up so will be requesting a copy of the levies a month prior to them falling due).

               thanks

              #23326
              DaveB
              Flatchatter

                Hi Slap Shot

                Refer to the Strata Schemes Management Act 1996

                Section 78 (6) refers:

                (6) Regular periodic contributions to the administrative fund and sinking fund of an owners corporation are taken to have been duly levied on an owner of a lot even though notice levying the contributions was not served on the owner.

                #23327
                HappyNow
                Flatchatter
                Chat-starter

                  Thanks everyone….yes I do believe it will be in the agreement between the OC and the SM.  I had not thought of that and I have not seen a copy of it as the SM has been in place for 3 years now.  I will check that document just so I am aware.  Appreciated.

                Viewing 6 replies - 1 through 6 (of 6 total)
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