When a property under strata title is sold, one of the disbursements is a Section 184 Certificate. This certificate is issued under Section 184 of the Strata Schemes Management Act 1996.
What is Section 184 Certificate?
The Certificate is issued by the managing strata agent and contains the following information:
- The names and addresses of the executive committee members, the managing agent and caretaker (if there is one)
- The levies to be paid by the owners
- Any outstanding levies
- The address where the records and financial statements can be viewed
- Any special by-laws made by the owners corporation in the past 2 years.
The reason why this certificate is required is similar to why a Section 603 Certificate (Council Rates) and Section 66 Certificate (Water Rates). The information provided will allow for both the Vendor’s and Purchaser’s Conveyancer to adjust the strata levies, for both sinking and administration funds, for settlement.
By adjusting these figures on settlement, both the Vendor’s Conveyancer and Purchaser’s Conveyancer ensure that their clients only pay the portion of such levies they are entitled to and not the other sides share.