Jim and Sue are considering selling their unit titled property.  Their Body Corporate had decided at its recent AGM to collect special levies to go towards the Long Term Maintenance Fund and Contingency Fund that the Body Corporate set up.

Jim and Sue queried their Body Corporate committee regarding whether they would be able to get part of their contributions to these funds back if they sold the property. Jim and Sue thought that those funds operated much like ordinary operating levies, so they would get them back.

Their assumption was wrong! The recently amended version of the Agreement for Sale and Purchase of Real Estate confirms what was already the existing position regarding such levies.  It provides that there shall be no apportionment (splitting of levies between vendor and purchaser) of contributions to any long-term maintenance fund, contingency fund or capital improvement fund on settlement of the sale of the property.  The only levies that are apportioned are the levies relating to the operating account.

Jim and Sue were relieved that they had discovered this before signing an agreement to sell the property, as this was a consideration for them in negotiating the purchase price.

It is recommended that you seek professional advice before entering into an agreement to sell a unit titled property to ensure you understand the position and are able to negotiate a fair outcome with potential purchasers.