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Section 80 of the Strata Schemes Management Act 1996 (NSW) gives the OC the power to collect its costs of recovering the debt:
“An owners corporation may recover as a debt a contribution not paid at the end of one month after it becomes due and payable, together with any interest payable and the expenses of the owners corporation incurred in recovering those amounts.“
In a 2009 case (Owners of Strata Plan 36131 v Dimitriou) the NSW Court of Appeal gave some guidance as to how section 80 is to be interpreted. The Court found that the recovery costs could be recovered however only to the extent that they are reasonable in amount and properly and reasonably incurred.
The upshot is that OC's cannot be guaranteed of recovering the full amount of costs incurred in recovering levies, however in the majority of cases an OC can recover most of their costs if not all of them.
Kind regards,
Daniel Dimock
Lawyer
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