New levies are being charged every couple of months for repairs in the building but I can see no renovations and have no idea where all the money is going.
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 Sydney
- Levies (usually collected quarterly) are an important part of a strata scheme and help towards running and maintaining the building.
- Generally speaking there should always be enough money in your scheme’s administrative fund or the sinking fund to pay for necessary renovations.
- Occasionally a strata scheme may need to impose a special levy to cover costs of unexpected repairs or renovations for which no funds have been allocated.
- Before levies can be imposed or altered they must be discussed and accepted at a general meeting by majority vote.
- You have the right to ask why levies are being charged and request details from the secretary of the executive committee or your strata manager about where the money is being spent.
- The strata manager or the executive committee is obligated under the law to keep financial records and statements about the scheme’s trust account.
- If you are unsatisfied with the response you receive you may need to resolve your dispute through mediation.