Does your strata management contract have in it a provision amongst its “Schedule B Charges” along the lines…. Levy Arrears Collection – Issue letter of Demand / Refer lot owner debt for legal action Etc. $xxx Chargeable to Lot owner ? Most would.
I guess Office Bearers and Committee Members keen to do the right thing and ensure the efficient payment of levies might be gratified to think that the OC isn’t going to have to pay these collection charges, BUT on what basis can the owners corporation oblige an individual owner to personally pay the strata manager’s fees ?
Individual lot owners are NOT party to the SM agreement and s 86 of the Act only obliges recalcitrant owners to pay the “owners corporation’s reasonable expenses” if the debt is recovered by means of a Tribunal Order or a Court.
Where is the lot owner’s obligation to pay the strata manager for sending them a letter of demand etc ? I don’t see it…I see only another revenue stream for strata managers. It has gone on for years.