Strata powers over forced property sale strengthened
Published:Sunday | November 24, 2013 | 12:00 AM
Avia Collinder, Business Reporter
New amendments to the strata titles law give strata corporations additional powers to sell property for unpaid maintenance fees after 30-day notice to owners.
Strata executives count on such fees to pay for insurance, utilities, and other common expenses. Stratas refer to multihome or multioffice complexes that share common facilities.
The corporations already have the power to compel property sales through the courts, but the process can be halted even if property owners paid as little as J$1,000 on outstanding fees.
Under the new Registration (Strata Titles) (Amendment) bill, it is proposed that at least 50 per cent of the fees must be paid, or other sums mutually agreed between the proprietor and corporation, to avoid a forced sale.
The bill was passed in the Lower House but is still to be taken up by the Senate.
Under the current law, enacted in 2009, stratas often have to go to court numerous times - with months elapsing between each - before they can get a summary judgment which forces payment.
It is now proposed that 30 days after notice, and providing all options for locating the owner has been exhausted, sale by private treaty or auction is permissible.
Appeals allowed
The strata corporation will be required to provide the proprietor or former owner with a statement of accounts noting contributions outstanding and settled post sale.
The owner is allowed to appeal a sale decision, if at least 50 per cent of the amount owing or other sum agreed to by the corporation has been paid.
If the sale proceeds, the owner can seek recompense for any proven misconduct on the part of the strata corporation through the courts.
Other proposed remedies will allow strata corporations the option of seeking an order of possession from the court for rental of the property, if contributions are outstanding after 60 days and all efforts to locate the proprietor have been exhausted.
Where possession has been granted, the tenant must pay rent to the corporation, not the owner.
There are approximately 2,000 strata properties locally - some commercial, some residential, and others mixed.