#18009
Jimmy-T
Keymaster

    Assuming this is NSW, my understanding is that the Strata Manager is legally obliged to charge 10 percent penalty interest on unpaid levies.
    Also, all costs associated with recovering strata debt are payable by the defaulting owner so the “costs more than it’s worth” argument is spurious.
    Time you called in the debts – and there are plenty of reputable agencies that specialise in strata debt collection – and then thought about getting a Strata Manager who knows what they are talking about.
    You’d have to wonder how many other issues they casually drop in the ‘too hard” basket.

    The levies arrears should have been noted in the accounts statement prepared for the AGM. If they weren’t there, the Strata Manager needs to explain why.  If they were there, your solicitor needs to explain why you were charged for an incomplete search.

    Meanwhile, this is what the Act says on Levies:

    79   Interest and discounts on contributions

    (1)  Any contribution levied by an owners corporation becomes due and payable to the owners corporation in accordance with the decision of the owners corporation to make the levy.

    (2)  A contribution, if not paid at the end of one month after it becomes due and payable, bears until paid simple interest at an annual rate of 10 per cent or, if the regulations provide for another rate, that other rate.

    (3)  However, an owners corporation may by special resolution determine (either generally or in a particular case) that a contribution is to bear no interest.

    (4)  An owners corporation may, by special resolution, determine (either generally or in a particular case) that a person may pay 10 per cent less of a contribution levied if the person pays the contribution before the date on which it becomes due and payable.

    80   How does an owners corporation recover unpaid contributions and interest?

    (1)  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.

    (2)  Interest paid or recovered forms part of the fund to which the relevant contribution belongs.

    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.