Why do Special Levy charges show up on my ledger when they are not yet due?

This is a question that we get asked ALL the time! A Strata owner will receive their ledger, and it will note that a special levy charge is overdue, even though it’s not due yet. How can this be??? Our administrative staff then generally receives comments such as “your accounting is incorrect!”, or “you guys are idiots!” 🙂

The answer is very simple. Generally speaking, when a special levy resolution is written, the levy is due and payable immediately as of the passing of the resolution at an AGM or SGM. This is done to ensure that, if someone were to sell their unit the following day, they would then have to pay out the entire levy prior to conveying. Very often, but not always, the resolution will ALSO have some wording such as “for the convenience of owners, the payment can be made no later than 2 months from the passing of this resolution.”

In this case, technically speaking, the special levy will show as a charge on the strata owner’s ledger immediately, but they will then have a 2 month period in which to make their payment for the charge.

Think of it like an invoice that you receive for services you contracted out. You receive an invoice that is due immediately, but you may have 30 days payment terms on the invoice which gives you some time to come up with the funds.

In conclusion, yes, you can receive a notice in the mail saying that your levy is overdue, even though it’s not due yet! Still confused? Please reach out to us here and we would be happy to walk you through some real-life examples!

https://youtu.be/XWjk6TXGBKI