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It never ceases to amaze me how my SP seems to be able to up the stakes when it comes to being autonomy gone mad.
At the recent AGM the self-managed SP decided to include a motion to allow the OC to charge owners for debt recover.
From our the Debt Recovery Policy:
Pursuant to s80 of the Strata Management Act the OC will charge directly the lot owner in arrears the following fees:
Three month overdue notice $70
Letter of Demand $100
Statement of Claim Fees to be advised by the debt collector
This is in a self managed OC and the notices and letters would be coming from the Treasurer; not some outside agent.
First thing to note is that section 80 of the Strata Schemes Management Act (SSMA) allows the Owners Corporation to recover incurred expenses. It does not allow the OC to set its own table of fees.
The policy then waffles on but has other highlights such as “The Executive Committee Treasurer may make demands, engage the services of a debt collection agency or commercial agent, instruct lawyers, and commence and prosecute legal proceedings”
My SP has a significant levy in arrears problem. 25% of owners do not pay their levy and there has been a 20 year unwritten policy not to pursue debt.
Such quotes as the following can be found in CTTT files:
53. “It is the function of an Owners Corporation of a strata scheme under the Act to take responsibility for the repair and maintenance of the common property, to manage the financial affairs of the Owners Corporation, to collect the levies and to pay the legitimate expenses of the Owners Corporation and to arrange and conduct meetings in accordance with the Act.”
J Smith Senior Member CTTT Lawson & Clarke v Owners Corporation SP 61788 (Strata & Community Schemes) [2011] NSWCTTT 270 (27 June 2011)
Last year the EC blew off an AGM resolution to engage an agent. In a nutshell a non-owner (but mover and shaker) rang the agent and said his services will not be needed. The EC then just walked away from the AGM motion to engage the agent. It was unbelievable.
It is one thing for “professionals” to sting owners and that is an area in need of reform but when the owners start endorsing stinging each other then what can be said.
Stay financial – stay in credit.