What financial obligations do lot owners have to the Owners Corporation?
Strata schemes incur many of the same expenses that you would expect from any other dwelling, such as:
- council rates,
- utility charges for common areas,
- repair work,
- maintenance, and
On top of these standard dwelling expenses, strata schemes may also incur other strata-specific expenses such as:
- building replacement valuations,
- specialised legal advice, and
- strata management fees if they choose to engage a professional strata manager.
All lot owners are obligated to contribute to these costs in line with their individual lot or unit entitlement, as specified in the strata plan.
To meet these expenses, lot owners are usually required to contribute regular levy payments into an administrative and/or sinking fund. Alternatively, lot owners may be required to contribute to a one-off special levy in order to fund a specific expense.
Lot owners are not allowed to object to a levy payment by refusing to pay it.
What non-financial obligation do lot owners have to the Owners Corporation?
As well as ongoing financial obligations relating to ongoing expenses, lot owners within a strata scheme also have other obligations and responsibilities.
These can be wide ranging, but some key obligations include:
- To act in accordance with all strata scheme by-laws;
- To share in the unlimited liability of the strata scheme should anything go wrong, such as a legal proceeding against the Owners Corporation.
General Advice Warning:
In accordance with the Corporations Act we are obliged to provide you with a General Advice Warning as we have provided you with General Advice. This warning complies with the requirements as set out in the Corporation Act.
The advice has been prepared without taking account your objectives, financial situation or needs.
Before acting on the advice, you should consider how appropriate it may be, having regard to your objectives, financial situation and needs.
Categorised in: Strata