Not only do almost 20% of people in NSW reside in a strata properties, others also own or occupy retail or commercial strata premises. Funds for the repairs and maintenance of the strata common property as well as insurance and administration costs of the strata scheme are raised through levies imposed on each lot determined every year at the annual general meeting.
It is important for strata levies to be paid for the following reasons:
* Payment of strata levies by an owner will prevent recovery action by the owners corporation.
* The levies are needed to allow the owners corporation to meet its obligations with regard to repairs, maintenance, insurance etc.
* If an owner has outstanding levies, that owner loses voting rights at strata meetings until payment is made.
But what else happens when lot owners do not pay these strata levies? The owners corporation can direct its strata manager to issue a letter of demand to the lot owner requiring payment of the outstanding levies, fees charged by the strata manager and interest. Failure to pay will result in legal action to recover the amounts owing.
Not only will non-payment of strata levies have an adverse effect on the lot owner but once a number of owners are delinquent in payment, this can upset the ability of the whole strata scheme to function normally which would impact all owners.
June 2024