What Are Special Levies?
Special levies are additional contributions imposed by the body corporate to cover unforeseen expenses that cannot be funded from the scheme's normal reserve funds or budget. Common reasons include:
Urgent repairs or maintenance (e.g., roof repairs).
Legal disputes involving the body corporate.
Compliance with new regulations.
When Are Special Levies Payable?
Before Transfer: If the special levy is raised before the property transfer date, the seller is usually responsible unless otherwise agreed in the sale agreement.
After Transfer: If the special levy is raised after transfer, the buyer is responsible, as they are now the registered owner and member of the body corporate.
Your Responsibilities
1. Check the Timing: Review the date the special levy was raised.
2. Review the Sale Agreement: Ensure the agreement specifies who is liable for special levies raised close to transfer.
3. Communicate with the Body Corporate: Understand the reason for the levy and the payment plan.
Legal Protection
You may not be able to avoid paying the levy, but you can:
Query the Process: Ensure the body corporate followed proper procedure in approving the special levy (as per the Sectional Titles Schemes Management Act).
Negotiate a Payment Plan: If the levy is substantial, ask the body corporate to spread payments over time.
Prevention for Future Buyers
1. Inspect Financials: Before buying, request the scheme's financial statements and budget to identify potential future liabilities.
2. Ask About Pending Expenses: Check for planned or anticipated special levies.
If you're uncertain about your liability or the fairness of the levy, consult a legal professional or managing agent for advice.
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