New South Wales - Adjustment Error

Claims Chronicles

What happened?

Our purchaser client settled on their townhouse strata property in August 2023.

At settlement, the strata levy was adjusted for a total of $446.07. After settlement our insured was issued with a notice of outstanding levies to the sum of $1,338.21. The insured when they sought clarification in respects to the outstanding levies, they were advised that the amount outstanding at settlement was not $446.07 but $1,338.21

Upon undertaking an assessment of the claim, it was determined that the Strata Manager had not disclosed prior to settlement the correct outstanding levies amount. The increase in levies had been agreed and implemented as further funds needed to be raised for the capital works fund which neither the Insured or Conveyancer had been made aware of prior to settlement.

As a result, and because our client purchased title insurance before they settled on the property, our client lodged a claim for the unpaid strata levies due and payable.

What was the resolution?

We accepted the claim to cover the error in strata levy adjustments, paying the levy amount that was unaccounted for at settlement.

Payment: $892 | Claim Type: Settlement Adjustment Error