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  • #11411
    swoo
    Flatchatter

      Hi

      Can anyone inform me whether an owner has to pay a Special Levy of $175,000  passed at the last EGM before the case is heard at NCAT??(NSW). 

      Owners have received a ‘Notice of Levy ‘ consisting of the  Standard Levy plus the Special Levy which is payable by November 1 or  10% simple interest will apply to the outstanding debt. In my case this will be on $13,900 UE 8.

      I have paid the standard levy, however 1/3 of owners  applied for Mediation to settle a dispute over the total cost of this cosmetic capital works.

      The Strata Committee held a meeting and decided not to attend Mediation which was scheduled for the 24 October. Our application to NCAT was received on Friday 20 but the levy is payable by the end of the month.

      What happens here as we don’t think we should be subjected to debt collectors or interest penalties until NCAT has heard our arguments and we have the chance to exercise our fundamental right to challenge the imposition of such a large Levy which is  purely for aesthetic reasons ie non structural 

      Some works we agree should go ahead but spending $65,000 to re render a small wall which is neither structural and was listed as the lowest priority by SPMA engineers on their report is ridiculous especially when we now have holes appearing in the yard of owners courtyard and water ingress in brick walls that should take precedence. We have $30,000 in the Capital Works Fund.

      If we pay the Levy contracts for remediation works will be signed however if NCAT at some stage later decides in our favour we would have to withdraw or may have to vary the contract and this may mean we are  in breach of the contract??

      Also does anyone know what happens with the debt collection process and time line? Do we have time to delay until an outcome is reached by NCAT?

      Neither Fair Trading or the Mediator had an answer except to pay the interest… 

    Viewing 3 replies - 1 through 3 (of 3 total)
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    • #28455
      Jimmy-T
      Keymaster

        You really want to avoid a situatuin whereby people who object to the levy lose their right to vote in future becasue they haven’t paid it.

        I strongly recommend you seek an interim order at NCAT (under section 231) to hold the payment date until four weeks after the NCAT decision has been handed down or the result of an appeal is heard.

        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.
        #28475
        kaindub
        Flatchatter

          This post is NOT pointing a finger at swoo

          I see time and time again where owners take no interest in the workings of their ‘strata’ ( sorry jimmy). Clearly the special levy was passed by a majority of those I  attendance ( or by proxy). Where were the vocal minority that is now protesting the levy.

          I am probably preaching to the converted ( the readers of flat  chat), but please get involved with your building, even if it is to go to the AGM. Then surprises like swoo has received are brought to owners attention early.

          In my daughters building of of 15 lots, they had 2 attend the AGM. My daugyter, an owner for just 3 months was elected onto the committe and then appointed to all three positions. Fortunately she has been schooled well by me in strata and the building has a hood SM.

          #28559
          swoo
          Flatchatter
          Chat-starter

            We promptly took your advice and asked for Orders stating what you proposed Jimmy but it was to no avail. The application was granted but the Principal brought the substantive hearing date forward from 29 Nov to 10 Nov when the Interim Order will be heard concurrently. Bewildered as the order was to stop payment of the Levy due  Nov 1 as stated in the Order and the ensuing interest I called NCAT asking if anyone had actually read it? She said Why should we cancel someone else’s for you?  WHAT ???

            I then called back and was dealt with by the Team Leader and after an anguishing 20 min she said she would ask for a Temporary Stay on the payment until the Interim can be heard…. Happy with that but then received an email tday from the Team Leader stating the Interim will be heard on 10 Nov with the Substantive and the ancilliary order for the waiving of interest will be considered.. 

            On Nov 1 the interest is negligible but the Owners will be in arrears. What is the point of having Interim Orders if they are NOT IN THE INTERIM???

            Can I appeal this to anyone?

          Viewing 3 replies - 1 through 3 (of 3 total)
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