Property problems: Flat rates and other issues of inner-city life

Q. Recently I purchased an apartment in the city. I have been living in it for a few months now but I have not received any notification about the rates or insurance or any contributions I need to make to the running of the apartment building.

I recall that when I bought the place I paid my share of the outgoings for the rest of the year but I am fairly sure that those 12 months are just about up and I still haven't heard anything. What should I do?

A. You are correct in your recollection that you would have paid "your share" of the outgoings relating to the apartment when you purchased it. You should have paid for the local body and regional council rates and your share of the contribution to the body corporate which manages the apartment building.

Your lawyer would have received a "settlement statement" setting out the proportionate share of the rates and contributions you and the vendor have to pay. Usually the vendor is responsible for making sure those payments are up to date at the time of settlement. If you agree to pay the vendor for the balance of the year, then the vendor is responsible for making sure that those payments are made as well.

Your solicitor should have also received a section 36 certificate. This is a requirement under the Unit Titles Act and is supplied by the body corporate. It shows you:

* The ongoing payments you will need to make to the body corporate.

* The state of your vendor's account with the body corporate.

* The name of the insurance company.

* How much money is in the "maintenance fund".

Body corporate contributions are likely to increase from year to year. You are responsible for the rates on your apartment and also your contribution to the body corporate. The body corporate is responsible for insuring the building and maintenance and management.

The fact that the body corporate and the local authorities don't seem to know you is not a major concern and can be easily rectified by sending notifications to both those parties.

The solicitor for the vendor actually has the responsibility to advise the body corporate and the local authorities. However, the vendor's solicitor first requires change of ownership notifications from your solicitor.

Your solicitor should have sent these to the other solicitor at the time of the sale and the vendor's solicitor should have sent them on to the appropriate organisation. In fact, under the usual agreement for sale and purchase of real estate, the vendor's solicitor has an obligation to do so.

You will not be able to participate in the body corporate's decision making until your ownership has been registered. The consequences are a little more severe for the vendor, who remains liable for those contributions until the change of ownership is notified to the body corporate.

You should ring your solicitor to discuss what has or hasn't happened and to rectify the situation if necessary.

In some circumstances the body corporate and the councils may not change the notification of ownership because of non-payment by the vendor but this would usually be dealt with by your solicitor ensuring that those payments were entirely up to date at the time you paid for the property.

Although it is the vendor's responsibility to notify both the body corporate and the local authorities and make sure the payments are made in terms of the settlement it is a fairly simple matter for your solicitor to check and if necessary insist on confirmation that the notification and payment has been made.

It is in both parties' interests that these things are done properly so that the register of shareholders which your body corporate secretary is obliged to keep under section 54 of the Unit Titles Act is kept up to date.