New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 1996 - SECT 72

72 Distribution of surplus money in administrative fund or sinking fund

(1) An owners corporation may, in accordance with a unanimous resolution, distribute between the owners any money in its administrative fund or sinking fund that is not, in the opinion of the owners corporation, required for the purposes of either fund.

(2) A distribution to an owner of a lot or a person entitled to receive it under subsection (3) must be made in the same proportion as is borne by the unit entitlement for the lot to the aggregate unit entitlement.

(3) Any money payable under subsection (1) in relation to a lot that is subject to a mortgage or covenant charge shown on the strata roll is to be paid:

(a) in accordance with the joint directions of the owner of the lot and the mortgagee or covenant chargee, or

(b) if they cannot agree-in accordance with an order of the court that, under subsection (4), has jurisdiction in the matter.

(4) An application for an order to resolve a dispute under subsection (3) may be made:

(a) in the case of a dispute where the amount of the payment does not exceed $500 and the title to land is not in question or is in question only incidentally-to the Local Court, or

(b) in the case of an application where the amount of payment does not exceed $500 and the title to land is in question otherwise than incidentally-to the District Court of New South Wales, or

(c) in the case of an application where the amount of the payment exceeds $500 but does not exceed $10,000 and the title to land is not in question or is in question only incidentally-to the District Court of New South Wales, or

(d) in any other case-to the Supreme Court.