What are levies / contributions?
Levies/Contributions are amounts paid by owners of a strata or community title scheme that are pooled to maintain the safety, upkeep, market value and enjoyment of scheme for all owners. The amounts of levies/ contributions collected from owners are decided at each annual general meeting of the scheme.
There are three kinds of levies:
Administrative Funds These cover the day to day expenses such as common area cleaning, gardening, insurance, minor repairs, tax return fees, bank charges, utility costs for common use areas and strata management fees.
Sinking Funds These cover planned and unplanned expenditure on maintenance, replacement and repairs.
Special Levies These are raised to cover significant or unexpected works that cannot be covered by the administrative or sinking funds.
Without levies, the owner’s corporation could be liable for large legal claims where un- rectified defects cause damage to person or property. Levies help protect the value of the property asset of owners by maintaining the scheme in good condition.
Does MaGrath Strata offer website access for owners to see their accounts and minutes of meetings?
Yes – MaGrath Strata Connect is an online portal which allows registered owners to view full details of their building administration and finances, pay levies and update their details.
The major difference between owning a house and owning a unit or apartment (known as a ‘lot’) in an owners corporation (OC) or body corporate, is that there are usually common property areas which generally are the responsibility of the OC or body corporate to maintain (i.e. Pathways, corridors, roofs, etc.)
Do I have to insure the contents of my strata unit?
While there is no obligation to do so, it is highly recommended that you take out adequate insurance on the contents of your unit. The insurance that the OC or body corporate organise covers the structure of the building and any fixtures inside lots (for example sinks, baths, shower trays).
Do you have a question about strata? Ask us here.