#13508
Jimmy-T
Keymaster

    First of all, the Owners Corporation has an absolute legal obligation to maintain and repair common property.  If the building was falling down and the Owners were reluctant to raise the money to fix it, all it would take would be one owner to go to the CTTT and ask for the appointment of a statutory manager who would then make these decisions for the owners, whether they liked it or not.

    Secondly, unpaid levies attract interest of 10 percent per annum and the costs associated with recovery of levies debts are sheeted back to the owners who are in default.

    However, there are circumstances where people simply aren't able to pay special levies and for some the increased equity in their homes is meaningless since they have no intention of selling or refinancing. 

    If that's the case for a lot of owners, an Owners Corporation would be well advised to look at a specialised strata loan from a company like Lannock (who sponsor this website) which means they can get the work done without having to impose special levies  (although this would result in increased levies to pay off the loan).

    In the case of the “can't pay, won't pay” owners, you have to just bite the bullet.  At least when they are in arrears, owners can't vote at a general meeting – and that means they can't block decisions to get tough with non-payers.

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.