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Apologies is this is an obvious question. I’m a first home buyer and have just moved into my apartment last week. The quarterly levy is due tomorrow – 13 days after obtaining ownership.
My question is – is the quarterly levy payment made in advance, as in – am I making a payment for the levy for July – October? Or is the payment for April – July?
Sorry if this is obvious, this is all new to me.
V123
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You are making payment for the levies in advance.
If you were paying for something in respect of the past, there would have been an adjustment of the amount owing on the property at settlement.
Just to add a couple of matters – levies are payable not from when you move in, but when you acquire ownership. As scotlandx says, they will be adjusted as part of the settlement process. They are normally due quarterly in advance, with a period of grace of 30 days applicable before interest is charged. This is charged at the rate of 10% pa should you be late in paying, backdated to the due date. A budget is set at each Annual General Meeting for each of the Administrative and Sinking Funds, and your levy will be worked out according to your Unit Entitlement as a proportion of each fund.
You should take an interest in what is going on in your strata scheme, read the Agenda and notice for the AGM and try to to attend, if you can’t get there give a proxy to one of your neighbours. Too often people complain about the levies they have to pay, without them realising how the system works, or bothering to attend meetings.
Hope all goes well in your new unit! If you’ve any more questions this forum is the place for you, no need to apologise for asking questions.
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