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  • #53695


    We sold our unit. This week the strata committee issued a new special levy for window repairs. Our contract of sale says that the levy is payable by the new owners. When do the new owners have to pay? The settlement date is Feb 8th.

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  • #53743

    The best place to start is clause 23.6 of the standard form Contract for Sale (NSW) (2019 edition)  which reads as follows:

    23.6 If a contribution [i.e. strata levy] is not a regular periodic contribution [e.g. a special levy] and is not disclosed in this contract –

    •  23.6.1 the vendor is liable for it if it was determined [struck at a General Meeting held] on or before the contract date, even if it is payable by instalments; and
    •  23.6.2 the purchaser is liable for all contributions determined after the contract date.

    So, to answer the question, the purchaser is liable to pay the special levy because it was struck after the Contract Date and is payable on settlement when title transfers into their name even if the due day for payment was before settlement.

    This is one reason why strata inspection reports are highly recommended when buying strata (before exchange of contracts) because the report will contain information about likely building work and the minutes of meeting will provide a warning that a special levy is around the corner.


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