In owner’s corporations and community associations, we have to pay for power. Every lot owner is required to contribute to the corporation or association via the payment of levies.

Every lot owner has a unit entitlement. This unit entitlement usually reflects a portion of space or value of the property proportionate to the whole of the corporation or association. The unit entitlement defines two things:

  • The amount of contribution you must make to the owner’s corporation; and
  • Your voting power at the corporation or association meeting.

What a lot of people don’t recognise is that you pay for the power you hold in a strata scheme or a community association. Failure to pay leaves you disenfranchised and without a vote. In other words, if your levies are not up to date you will not be permitted to vote at an annual general meeting or extraordinary general meeting.

When must the levies be paid by? It is absolutely clear that you must be paid up to date prior to a notice of annual general meeting or extra general meeting being sent. This means that you cannot rush in and pay before the meeting and suddenly become financial.

If I were an owner’s corporation or community association that wanted to push some change through, I would serve notices without due warning to anybody but my allies. This would leave my enemies without a vote at the general meeting quite legitimately. If you want to have a say in your owner’s corporation or community association, ensure that you are paid up to date. Failure to do so may mean that the owner’s corporation or community association are able to make rules and decisions that are not in your favour.

This article was written by Bailey Compton, Principal Solicitor & Director at Leverage Group.

To get in touch with Bailey, please email info@leveragegroup.com.au