Leverage has recently been giving advice to a Strata Plan Owner’s Corporation, regarding a water bill which has been transferred into their name.

The Strata Plan forms part of an 8 lot Community Association. The water services were installed and form part of Community Association Property. The Community Management Statement (CMS) acknowledges that the water services are not separately metered. The CMS goes on to state that, the water bill will be charged based on community lot entitlements.

There are major problems plaguing this particular Community Association, however the issues arising in regard to the water supply, tops them all! The developer, being the owner of the other seven Community Lots (and the original owner of the strata plan), requested that the water services provider bill the strata plan. The strata plan has for the last seven years, been receiving the bill for the whole Community Plan.

The water services operator is quite correct in issuing the bill to whomever they have been advised as being the operator. Therefore, the water services operator has done nothing unlawful. They are quite within their right to take action against the strata plan.

The water services operator has now agreed to put all new bills in the name of the Community Association in accordance with the CMS. Unfortunately, they have not amended the earlier invoices, in order to have the Community Association pay. The strata plan is still liable for those bills.

If you are a Strata Manager or the Treasurer of an Owner’s Corporation that constitutes part of a Community Association, always check your invoices. You might just find that you’re paying for something which in fact, is not for your account! Don’t carry someone else’s monkey!

 

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