What is the purpose of an owners corporation?

What is the purpose of an owners corporation?

The owners corporation is responsible for maintenance, repair and overall management of the common property. This includes: financial management.

What is Owners corporation Levy?

A levy is also known as a Body Corporate or Owners Corporation fee and is a regular financial contribution made by lot owners that go towards the maintenance of their strata property. Your levies contribute to two funds, the Administration Fund and the Sinking Fund.

Why is it called a sinking fund?

Why is it called a sinking fund? Don’t be fooled by the seemingly negative word “sinking.” In more traditional circles, “sinking fund” refers to money set aside to pay off long-term debt such as a bond. The term “sinking” likely refers to the decreasing level of debt remaining as it gets paid off.

Are levies paid monthly?

Rates, taxes and levies are fees paid to the authority that services your property such as a body corporate or municipality. If you are buying a freestanding property you will be charged monthly for municipal rates and taxes.

An owners corporation is responsible for: Overseeing and managing maintenance and repairs of common property. Managing strata finances and funds. Issuing fee notices to owners. Developing financial budgets and statement of accounts, and keeping proper financial records.

Why are strata fees so expensive?

The number of communal amenities will influence the cost, i.e. strata fees for complexes with swimming pools, elevators and gyms are likely to be higher, than those without. Depending on the property, you could see yourself paying between $550 and $2,500 a quarter.

When do fees and charges have to be paid to owners corporation?

penalty interest (if charged) is payable on the overdue fees and charges at the date of the final notice. For more information, view the penalty interest rate information on this page the owners corporation intends to take legal action to recover the amount due if the full amount is not paid within 28 days of final notice.

What’s the maximum interest rate an owner corporation can charge?

The maximum rate of interest that your owners corporation can charge on overdue fees is determined by the Penalty Interest Rates Act 1983. To view the current penalty interest rates, visit Penalties and values – Department of Justice and Community Safety.

What are the regulations for an owners corporation?

The contents of any contract of appointment must comply with the Owners Corporation Act 2006 and the Owners Corporations Regulations 2018. The maximum rate of interest that your owners corporation can charge on overdue fees is determined by the Penalty Interest Rates Act 1983.

How much can owners corporation Levy be increased by?

How much can Owners Corporation levy fees be increased by? At our AGM at the end of 2018, the owners voted to increase the Owners Corporation levies by $125 per quarter / $500 per year. I didn’t vote for this increase because I felt it was unreasonable.