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Is tenant liable for special levy?

A Property24 reader asks:

A Property24 reader says his landlady has told him he's liable for a special levy in the complex where he rented. Is this legal?

In a dispute with a former landlady aspecial levy was instituted by the body corporate for a shortfall due to monies being pilfered by the previous complex management. My landlady has now stipulated that I am liable for these payments. Is this legal? My contract stipulates that I am liable for increases in rates, taxes and levies, but surely a special levy is not my responsibility? 

Yusuf Boda, legal manager at Legal & Tax, advises:

Generally the clause as it stands, refers to the normal levy that a landlord would pay to a body corporate, which levy is generally increased annually. In this instance, the lease stipulates very clearly that the tenant will be liable for the increase in levies. 

Technically a special levy is also a levy, however, I do not think in the present instance, it can be included in the broad definition of levy. It could not reasonably have been foreseen that such a levy would have to be paid and this expense is to be borne by the tenant, moreso that the levy is payable for a historical event. 

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About the Author
Yusuf Boda

Yusuf Boda

As legal manager at Legal & Tax, Yusuf Boda oversees the operations and management of the legal department. He brings extensive practical legal experience to his role at Legal & Tax including a number of years spent in private practice. Boda holds a Master of Laws Degree. He joined Legal & Tax in 2005 as a legal advisor and was promoted to manager of the legal department in 2008.

As legal manager at Legal & Tax, Yusuf Boda oversees the operations and management of the legal department. He brings extensive practical legal experience to his role at Legal & Tax including a number of years spent in private practice. Boda holds a Master of Laws Degree. He joined Legal & Tax in 2005 as a legal advisor and was promoted to manager of the legal department in 2008.

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