Western Australian Current Acts

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STRATA TITLES ACT 1985 - SECT 36

36 .         Levy of contributions on proprietors

        (1)         A strata company shall —

            (a)         establish a fund for administrative expenses that is sufficient in the opinion of the company for the control and management of the common property, for the payment of any premiums of insurance and the discharge of any other obligation of the strata company; and

            (b)         determine from time to time the amounts to be raised for the purposes described in paragraph (a); and

            (c)         raise amounts so determined by levying contributions on proprietors —

                  (i)         in proportion to the unit entitlements of their respective lots; or

                  (ii)         where a by-law referred to in section 42B or an order under section 99A is in force, in accordance with that by-law or order;

                and

            (d)         recover from any proprietor, by action in a court of competent jurisdiction if necessary, any sum of money expended by the company for repairs or work done by it or at its direction in complying with any notice or order of a competent public authority or local government in respect of that portion of the building comprising the lot of that proprietor.

        (1a)         If a mortgagee of a lot has entered into possession of the lot any contribution in respect of that lot may be levied on the mortgagee.

        (2)         A strata company may —

            (a)         establish a reserve fund for the purpose of accumulating funds to meet contingent expenses, other than those of a routine nature, and other major expenses of the strata company likely to arise in the future; and

            (b)         determine from time to time the amounts to be raised for the purpose described in paragraph (a); and

            (c)         raise amounts so determined by levying contributions on the proprietors in proportion to the unit entitlements of their respective lots.

        (3)         Except in so far as and to the extent that the by-laws of a strata company may empower the council of that company to exercise the functions in subsections (1)(a), (b) and (c) and (2), those functions shall be performed by and in accordance with resolutions of proprietors passed at a general meeting of the strata company.

        (4)         Any contribution levied under this section —

            (a)         becomes due and payable to the strata company in accordance with the terms of the decision to make the levy; and

            (b)         if not paid when it becomes due and payable, bears interest on the amount unpaid at the rate of simple interest prescribed, unless the company determines (either generally or in a particular case) that an unpaid contribution shall bear no interest or interest at a lesser rate; and

            (c)         including interest accrued under paragraph (b), may be recovered as a debt by the strata company in a court of competent jurisdiction and the strata company may agree to a compromise of such a debt.

        (5)         Interest paid or recovered under subsection (4) or (6) shall form part of the fund to which the contribution belongs.

        (6)         Subject to section 43(4), a proprietor of a lot is liable in respect of any contribution levied under this section and any interest thereon, jointly and severally with any person who was liable to pay that contribution and interest when that proprietor became the proprietor of that lot, to pay so much of that contribution and interest as was unpaid when he became the proprietor of that lot.

        [Section 36 amended: No. 58 of 1995 s. 39; No. 14 of 1996 s. 4.]



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