# Legislation that developer must contribute towards maintenance fees for unsold units?



## DubShelley (18 Jun 2010)

Hi All,

Apologies to jump in on this but I'm wondering is there any current legislation stating a developer must contribute towards maintenance fees for unsold units in a development? Our bill for the coming year has just come through and despite assuring us last year that they (the devloper, also managing agent) would contribute they have failed again to do so.

There are currently 80 sold units in our development but a total of 98 unsold. One block of 43 units is still just a shell so I'm not sure if he is liable for these but the remaining 53 units are almost complete but there are just no buyers.

The budget has already been done so I would imagine we have no comeback on this one. Any ideas? Or do we need to wait for this Bill to come into law and hopefully see our fees reduce next year?

Thanks for reading!
DubShelley


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## Inca (11 Oct 2010)

Hi Dubshelley, bit late on this but anyways.
My understanding is that service charges are only payable by the members of the Management Company. You only become a member when you purchase your unit.
The developer is personally responsible for meeting *all* costs in relation to his unsold units i.e. insurance, maintenance, refuse costs etc. These costs should not be paid by the members of the Management Company.
Why do you think the fees will come down next year? Refuse costs, block insurance, management fees etc... will all increase as more units become members of the Management Company. I expect they will increase on a pro rata basis give or take... I appreciate that some fees i.e. Company Registration Fees will stay the same but I think the major costs will increase as there are more units to manage / maintain.


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