Body Corporate Levies
- Thread starter willy1111
- Start date
From my understanding a special levy (as opposed to normal body corporate fees) which is struck before the date of the contract is required to be paid by the seller.
Where special levies are paid by instalments, my understanding is that all instalments must be paid by the seller (?). If a special levy is struck after the date of the contract then that its adjusted between seller and buyer.
Presumeably an inspection might show if there is an intention to raise a special levy that may be struck after the date of the contract. Ultimately due diligence is required where there is a risk of this occurring.
Where special levies are paid by instalments, my understanding is that all instalments must be paid by the seller (?). If a special levy is struck after the date of the contract then that its adjusted between seller and buyer.
Presumeably an inspection might show if there is an intention to raise a special levy that may be struck after the date of the contract. Ultimately due diligence is required where there is a risk of this occurring.
Special BC levies and who pays
Hi Buzz - I'm not sure that what you say is correct. We sold a unit about 2 years ago because the Body Corporate decided on a special levy to save up to repaint the complex of 17 units. This doubled the body corporate fees and made it unviable in our opinion. We'd paid for the first extra instalment but gladly handed over the commitment to pay the extra levy for the next three years or so to the purchasers.
I believe it would be up to a purchaser to check Body Corporate minutes to determine what costs they are liable for in the future.
Or maybe we were just lucky and got off lightly?
The unit has increased considerably since we sold so I'm guessing the purchasers are happy with the deal. We used the funds to go into a better deal so we're happy too.
Regards
Shirley
Hi Buzz - I'm not sure that what you say is correct. We sold a unit about 2 years ago because the Body Corporate decided on a special levy to save up to repaint the complex of 17 units. This doubled the body corporate fees and made it unviable in our opinion. We'd paid for the first extra instalment but gladly handed over the commitment to pay the extra levy for the next three years or so to the purchasers.
I believe it would be up to a purchaser to check Body Corporate minutes to determine what costs they are liable for in the future.
Or maybe we were just lucky and got off lightly?
The unit has increased considerably since we sold so I'm guessing the purchasers are happy with the deal. We used the funds to go into a better deal so we're happy too.
Regards
Shirley
