Special levies are additional levies, collected by the Body Corporate to pay for unexpected costs during the financial year.
These can be costs that were either not included in the budget or not enough money was set aside to meet them.
For example, if the cost of painting the common property area is more than the amount allocated in the sinking fund budget for the property works, the body corporate can decide to collect a special contribution from each owner to meet the extra cost. The body corporate must pass an ordinary resolution for this to be agreed upon.
Every special levy issued is individual. The levies can be issued in one lump sum or in ongoing payments over several levy periods. They can become due immediately, at some point during the financial year or, in some instances, in the coming years. This makes it difficult to establish who is responsible for what and when.
Regarding who pays the special levies is a matter negotiated between the Buyer and Seller or each party’s conveyancer.
If the special levy has already been issued to the seller and it is a one-off lump sum payment, then it is the Sellers responsibility.
In circumstances where the levy consists of multiple levy payments, (some of which are unpaid), the special levies will be pro-rata per what has currently been issued to the existing lot owner.
If the special levy has not been issued to the Seller, and it is a one-off lump payment, then it is the Buyers responsibility.
Of course, it is up to the Seller to disclose this information to the Buyer as part of their Disclosure Statement.
📲 Feel free to contact Hatzis Lawyers for further information on conveyancing matters.
Comments are closed.