Question: A lot owner in our small block has consistently been in arrears with levies. Although they are on a payment plan the situation is not improving. Do we have other options to recover the overdue levies?
We have one owner in our small strata block of six that has consistently been in arrears for over 18 months. The owner makes small monthly contributions but is always 6 months + behind. They get charged the standard 10% interest on the overdue amounts.
Our Strata Manager has indicated there’s not much he can do if the owner is adhering to the payment plan. Is this correct or are there other options to recover the overdue levies faster?
Answer: Even if the defaulting owner is on a “payment plan”, the Owners Corporation can initiate legal proceedings for debt recovery.
Your Strata Manager is not strictly correct. Even if the defaulting owner is on a “payment plan”, this does not limit the rights of the Owners Corporation to initiate legal proceedings for debt recovery as outlined in Section 85(7) of the Strata Schemes Management Act 2015.
85 Interest, discounts on contributions and payment plans
- The existence of a payment plan does not limit any right of the owners corporation to take action to recover the amount of unpaid contributions.
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