South Australia - Unadjusted Special Levy

Claims Chronicles

The Background

In April 2024, settlement took place on Peter and Nilam Hackett’s* one-storey house within a Strata complex in Old Noarlunga, South Australia. Several days after settlement occurred, the Hackett’s were issued with a Strata invoice for $1,400. The invoice was related to a Special Levy that had been raised due to an emergency maintenance call for a burst pipe in the housing complex’s common area, that occurred a few months before settlement. The Hackett’s put in a claim for the Strata invoice.

What happened next?

A review of the conveyancing file showed that the Hacketts’ conveyancer was only supplied with the prior years’ AGM Minutes. Due to the timing of when the Hackett’s purchase occurred, their conveyancer was not provided with the Minutes of the emergency AGM which took place between exchange and settlement advising of a Special Levy being raised to address the unforeseen works.

What did we do?

Given the unfortunate timing of the burst pipe, the Strata invoice being issued just a few days after settlement, and the Hacketts’ conveyancer being unaware of the emergency maintenance call, we approved the Hacketts’ claim. It was accepted under Covered Risk 4.2, for the unpaid levies that should have been paid by the vendor. The Hackett’s accepted our offer of $1,400 and the claim was finalised.

Payment: $1,400 | Claim Type: Unadjusted special levy

*Names have been changed for privacy purposes.