Part 16 published on 01/11/06
Current owner entitled to special assessment refund
Owners had paid a special assessment (into a special fund). One of the strata lots was then sold. After the sale had been completed, the strata corporation issued a refund (to all owners) of a portion of the special assessment. The question was: Who should receive the refund for the particular strata lot? The previous owner or the current owner? The agreement of purchase and sale was silent on the issue.
The Court said that the current owner was entitled to the refund, in the absence of any agreement to the contrary. The risks of any benefit or loss relating to the building defects, which were the subject of the special assessment, fell upon the current owners, not the past owners. So, the current owners should be entitled to any refund.