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  • #11663
    williamwa
    Flatchatter

      Our strata fees from April 1989 are so disproportionate my bedsit 26 sq value  $140k pays $115 per Month.  An independent 3 bed Villa 85 sq  value $430k pays $242 per month. there are 59 small units abd 110 villas.

      In 2016 a special levy of $80 per month was voted in and was across he board not on entitlements. The smaller units have no way of outvoting and this has left us subsidizing the wealthier owners, this is the third year sor the special levy and talk of it continuing at a lower rate next year.

      I cant see us getting tne entitlements changed 

      What advice please

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    • #29488
      Jimmy-T
      Keymaster

        Assuming you are in NSW, the Act here says this:

        83   Levying of contributions

        (2)  Contributions levied by an owners corporation must be levied in respect of each lot and are payable (subject to this section and section 82) by the owners in shares proportional to the unit entitlements of their respective lots.

        Then, you can apply for orders under this section:

        87   Orders varying contributions or payment methods

        (1)  The Tribunal may, on application, make either or both of the following orders if the Tribunal 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.

        (2)  An application for an order may be made by the lessor of a leasehold strata scheme, an owners corporation, an owner or a mortgagee in possession.

        And you can ask for the excess money back under this provision

         

        88   Effect of order varying contributions where payments have been made

        If a contribution that is the subject of an order by the Tribunal under this Division has been wholly or partly paid:

        (a)  an order to pay more has effect as if the owners corporation had decided to levy a contribution equal to the difference, and

        (b)  an order to pay less imposes a duty on the owners corporation to refund the difference.

        And finally, you can seek a reallocation of the unit entitlements under this section (click here).

        However, if you are in WA as your name suggests, a completely different set of laws apply but they may have the same effect.

        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.
        #29490
        Jimmy-T
        Keymaster

          One anomaly of the 1985 WA strata laws is that the Owners Corp can pass a by-law to set a special levy that is paid equally by all owners and not on the basis of unit entitlements.

          It’s an invitation to the larger property owners (who have the greatest voting power) to underestimate their levies then heap the shortfall on to everybody else equally.

          There is a review of strata laws in WA underway – can’t come too soon IMHO.

          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.
          #29495
          williamwa
          Flatchatter
          Chat-starter

            It seems impossible to have unit entitlements changed it needs a surveyor or valuer to price every unit and in large villages like ours it will never happen.

            #29497
            Jimmy-T
            Keymaster

              @williamwa said:
              It seems impossible to have unit entitlements changed it needs a surveyor or valuer to price every unit and in large villages like ours it will never happen.  

              Can you confirm which state you are in?

              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.
              #29499
              williamwa
              Flatchatter
              Chat-starter

                I’m in WA the special levy was just voted in and not in a bylaw so they haven’t followed strata act.

                #29503
                Jimmy-T
                Keymaster

                  Firstly. you can assume that you are not the only owner being disadvantaged by this obvious “gaming” of your strata schemes finances.

                  So get in touch with other owners and discuss the possibility of hiring a specialist strata lawyer to help you sort this out. 

                  Initial consultation should be free at which you should be given a reasonable idea of probable expenses and the likelihood of success or otherwise.

                  The State Administration Tribunal has the capacity to sort out a lot of the problems that you have reported – not least the complete disregard for strata law and fair dealing.

                  If you haven’t already done so, you will find their guide to strata living available for download here.

                  If your internal dispute processes (as outlined in your by-laws, if at all) have failed to achieve a satisfactory resolution, the SAT can rule on any or all of the following:

                  Some of the orders which SAT may make include:

                  • to settle disputes or complaints in relation to a scheme.
                  • varying the amount of strata levies or the manner in which these are to be paid.
                  • various orders in relation to by-laws made by the strata company, or where the strata company has refused to make certain by-laws.
                  • that strata levies are to be apportioned on the basis of unit entitlement or on some other basis.
                  • to change the schedule of unit entitlement on the strata or survey-strata plan.

                  Talk to your neighbours, have a look at THIS FACT SHEET and consult a specialist strata lawyer (it will have to be a specialist – your family solicitor or general conveyancing lawyer is unlikely to have the knowledge or experience).

                  And yes, you will have to get some sort of surveyor in but if the people who are rorting the system put up too much resistance, they could end up footing the bill.

                  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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