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:
- 1st Letter of Demand by strata manager for unpaid levies
- 2nd Letter of Demand by strata manager for unpaid levies
- 3rd Letter of Demand by strata manager for unpaid levies
- 4th Letter of Demand by lawyer/debt collector for unpaid levies
- 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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