Conveyancer didn't order s184 cert now strata is incorrect

Discussion in 'Legal Issues' started by RonnyYil Property, 14th Apr, 2021.

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  1. RonnyYil Property

    RonnyYil Property Well-Known Member

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    Hi all

    I settled on my apartment 12 March but received a strata bill where I can see that the outstanding strata from the previous vendor wasn't paid out at settlement.

    The strata at settlement seemed to only clear out December quarter with interest now I have to pay the full march quarter which I believe I was only liable to pay 18ish days for which should have came out from settlement.

    Do I have recourse to contact my conveyancer as I can see they didnt order a s184 certificate? Are they negligent?

    I can post my strata transactions if that helps

    It seems I am paying 700ish of what I shouldn't be.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    yes and yes
     
  3. RonnyYil Property

    RonnyYil Property Well-Known Member

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    Thanks. I just saw on the conveyancer invoice they've charged me for a s184 certificate so I don't know how they've gotten this wrong.

    Strata balance is ment to be nil and cleared at settlement right ?

    Im not sure if they ordered one since before settlement they were asking for the strata report to see strata levy
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Have you read your settlement statement? The conveyancer may (should) have adjusted the settlement amount by the amount of levies outstanding at the time eg if they had been raised but not due and remained outstanding at the time of settlement. You are possibly sitting on the money in the adjustment (excess funds not drawn down in the loan) and have been pinged for not paying the costs.
     
  5. RonnyYil Property

    RonnyYil Property Well-Known Member

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    Conveyancer has replied saying they will chase up the vendor's strata so I was right in that the conveyancer didn't do the adjustment sheet correctly but at the least they're trying to rectify it.

    After this experience I'll only ever use a lawyer for property even if the cost is higher.
     
    Last edited: 15th Apr, 2021
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Have you checked the settlement statement for the proceeds paid at setlement ? Its possible the vendor paid you for the amount due for their period of ownership and now you are liable for the full balance. Settlements adjustments will be "payable by vendor" or "payable by purchaser" and will reflect as a - / + to the amount payable. This usually occurs when a settlement occurs for a uninvoiced expected levy.