› Flat Chat Strata Forum › Finance, budgeting and loans › Owner deceased, no fees paid for over two years › Current Page
Jimmy you may be wrong. The penalty interest is 10% per annum, not per quarter and it’s simple interest, not compounded (that makes calculation easier).
I probably am wrong. However the debt is accrued quarterly so it would be reasonable to charge four penalty interest charges which would add up to the same (uncompounded).
And bear in mind this is in Victoria where the OC can decide not to impose penalty rates or chose the penalty interest they want to impose up to a maximum of 10%. Also according to this fact sheet, penalty interest can be charged 28 days after the final demand for levies (which can be issued 28 days after the initial notice).
Unlike in NSW, there is nothing (that I can find) in the OC Act about being able to charge reasonable costs of recovery to the lot owner, but that may exist in other legislation.
In this particular case, the imposition of penalty rates is really only suggested as a tactic to get the executors of the estate moving.