› Flat Chat Strata Forum › Levies and Unit Entitlements › Not financial › Current Page
JimmyT said:
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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.
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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.
One thing about biting the bullet is that an Owners Corporation (OC) can bite it for too long.
The Limitation Act 1969 at s14 seems to place a six year period on what can be claimed, i.e. if an owner has not payed, for example, for 12 years then the OC is only likely to get 6 of those years if they do decide to go after the defaulter.
Some of our 33% of defaulters are long term defaulters, long, long term defaulters. It is money that it is unlikely the OC will be able to recover.