NSW: Q&A Special Levies, Levy Payments and Overdue Levies

 

Question: One lot owner is refusing to pay levies. What is the correct/recommended procedure to pursue debt recovery and in what order should those steps be taken?

I am the “Honorary Administrator” of a self-managing strata scheme of four townhouses.

We may need to take levy recovery action against one owner who is refusing to pay the 4 equal quarterly levy contributions discussed and agreed to as an agenda item at our AGM.

I have sent several friendly reminders and a formal letter of demand to pay by 4 equal quarterly instalments as required under the NSW Strata Schemes Management Act and the Owners Corporation, but he is refusing.

The lot owner has requested to pay by setting up a periodic payment arrangement with his bank to pay in small fortnightly instalments.

After sending out reminder notices and a formal letter of demand, what is the correct/recommended procedure to pursue debt recovery and in what order should those steps be taken?

Answer: The process is as follows

Generally speaking, the process is as follows:

  1. 1st Letter of Demand by strata manager for unpaid levies
  2. 2nd Letter of Demand by strata manager for unpaid levies
  3. 3rd Letter of Demand by strata manager for unpaid levies
  4. 4th Letter of Demand by lawyer/debt collector for unpaid levies
  5. Legal proceedings for debt recovery are commenced

For the full question and our detailed response, visit the original publication at Look Up Strata.

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