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ARTICLE · 11 JANUARY 2017

Pre-shrunk: NCAT proceedings available when a developer sets initial levies too low

If lot owners face inflating estimates and levies, there may be some recourse to seek compensation from the developer.

AustraliaReal Estate and Construction

Purchasers of new strata lots can sometimes find themselves in a situation where levies increase at an alarming rate above the level of the estimates and levies determined by a developer during the initial period.

Under the Strata Schemes Management Act 2015 if lot owners are faced with inflating estimates and levies there may be recourse to seek compensation from the developer.

Action for Lot Owners

  • Where strata levies inflate beyond the levies and estimates set by a developer during the initial period, consider seeking advice in relation to bringing a claim in the NSW Civil and Administrative Tribunal ("NCAT") within 3 years from the end of the initial period.

Action for Developers

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