Many persons are unaware of the recurrent fees associated with owning a Strata property. Some persons might also be surprised to learn that they have to pay monthly maintenance fees to the Strata, among other expenses. This week will we will look at three of the main costs associated with strata properties. They are as follows:
1. Property Taxes
According to the Registration of Strata Titles Act, owners of strata units and the corporation are jointly and severally liable for all property tax payable in respect of that parcel. It is therefore important that property owners in strata corporations ensure that other owners pay their respective amounts due.
The taxes are calculated on the unimproved value of the property on which the strata corporation is established.
You can pay or check the amount of property taxes payable by entering valuation number and strata lot no. Logon to the website https://www.jamaicatax.gov.jm/property-tax-query
2. Property Insurance
Section 5 (1) of the Registration (Strata Titles) Act determines that the duty of the corporation, inter alia, is “To insure and keep insured the building to the replacement value thereof against fire, earthquake, hurricane and such other risks as may be prescribed, unless the proprietors by unanimous resolution otherwise determine”.
It is the duty of the corporation to maintain adequate insurance coverage for the building(s) and the proprietors are responsible to pay for the insurance in accordance with his/her unit entitlement.
A single proprietor cannot determine that no insurance coverage is to be sought but rather all proprietors (100%) have to agree that no insurance will be obtained.
3. Maintenance Fees
Maintenance fees are contributions generally paid monthly or quarterly into the strata plan’s bank account. These fees are used to fund the ongoing expenses of the Strata for things like cleaning, gardening, electricity and building maintenance,
The amount of maintenance contribution is determined by the budgeted expenses of the Strata.
It is truly important that property owners understand the costs associated with a Strata and pay their relevant fees as the Strata has the right to exercise a power of sale in respect of a strata lot in accordance with Section 5(2) (e) of the Act.
Abi-Gaye White-Thomas B.A., LL.B (Hons)