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In a multi-layered body corporate scheme (community body corporate with several subsidiary body corporates) do owners have limited liability in accordance with their lot entitlements? There is conflicting legal advice and owners are being told they can be levied repeatedly to pay a special levy even if all owners don’t pay. So basically eventually having to pay for unfinancial owners portion of the debt too? Is this right or is there some protection under BUGTA in Queensland that can limit owners’ liability to their own entitlements used to calculate levies as in other States?
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Sorry, I don’t speak Acronym. What is BUGTA?
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According to Google, the Building Units and Group Titles and Other Legislation Amendment Act 2022 was introduced to amend the Building Units and Group Titles Act 1980 (BUGTA) and the Mixed Use Development Act 1993 (MUDA).
My understanding is that owners have unlimited liability for the management of their schemes. However, there are various ways of making up the shortfall in levies and the recovery of debts due to other owners’ levies arrears. Ask your strata manager if they have looked at borrowing as an alternative to special levies and what their policies on debt recovery are. There is no way you need be out of pocket due to other owners inability to pay their levies. But you may need to be patient and just adding to the levies burden is not the smartest way to fix this
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