Hi,
If a strata scheme started, say on 1st January 2007 and the strata levies first started from 1st March 2007, is the builder supposed to pay a pro-rata levy for the 1st January 2007-28th February 2007 period that wasn't covered by the levies?
Thanks.
Who owned the units between commencement of the scheme and the commencement of the levies?
The builder owns a number of units and some others are owner occupied. The builder still owns some of the units when the levies kicked in.
A few months prior to start of the strata, the builder already sold some of the units. I understand that the strata scheme only needs to start once a certain percentage of the units are sold.
Generally the builder/developer is liable for the levies on each unit up to the point of settlement on each unit. That is, you are not liable for any levies until you take possession (of the title) – your solicitor would adjust any levies paid at the time of purchase.
I guess my question wasn't worded correctly. Basically, I'm looking through the strata accounts as the strata is in the deficit. Looking at the start of the strata, I noticed that the strata commenced on 1st Jan 07, but the income from the strata levies only started a couple of months later.
The difference in the strata commencement date and the levy commencement could be due to owners already paid their quarterly levies to the builder prior to the start of the strata.
The problem then arised when the strata has to pay for costs incurred from 1st Jan 07 to 28 Feb 07, although the income for the strata is for periods starting from 1 Mar 07. This partly resulted in a deficit in the current budget. It seems to me that either the costs incurred from 1st Jan 07 to 28 Feb 07 be billed back to the builder or that the builder should pay the 2 months worth of levies to cover for that period.
Any thoughts on this? I will be asking the strata manager about this as well, but wanted other opinions as we didn't think the manager is doing a good job so far.
Thanks.
You will need to determine who the liability for the levies between commmencement of the sp and commencement of the levies lies with. Obviously some bills will be recieved in the intervening period and are paid in advance. These costs must be paid pro-rata by the owners (both the developer and purchasers)
Id also recommend that you purchase one of the texts on strata management as well as getting a copy of the strata act for your state.
Thanks for the advice, Scott.
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