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Hi All,
I received my first invoice from the new strata company(transferred from a previous strata company), with an arrears fee already on it saying i had not paid the last 2 invoices , even though this was their first invoice to me(from either company), and i never received any invoices in the post. I sent them an email saying that this is the first invoice, could they remove the fee, since the original postal email was never sent to me/my address. They strongly refused and said they had sent the original invoice, even if i didnt receive it, so i have to pay the fee since its overdue. I paid this invoice immediately, minus the fee component.
I really dont want to pay for the fee, when i am not at fault. (note that this all happened during the peak period of Covid when many services were not working at their optimum due to staff shortages- so i can only assume the first invlice was somehow lost in the process , by the issuing strata co or the postal system)
The strata company person responsible would not even take a call or return a call , even to just discuss the matter. He only sent a very direct and uncompromising email
What are my options (apart from paying an unfair Fee) to resolve this matter ..?
Should i contact Owners Corp? Fair Trading ?
note that i have always paid my prior invoices on time, and am based in NSW
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Well you have called their bluff already and paid the invoice minus the late fee imposed. What is the late fee anyway? some 10%? or $20 – $30? When my apartment purchase was settled eight years ago, the strata company imposed a late fee on me for levies some 3 months later, but they had never invoiced me as the new owner initially, so I had no idea of the levy notice being due. I wrote a covering letter to them advising them it was their fault for not mailing me the levy notice in advance, and I wasn’t paying the 10% penalty (or $13 charge) as I recall. I never heard anything more about it. For the strata company to take debt recovery proceedings over such a paltry amount as an overdue percentage would be ludicrous and simply not worth their time. Most strata agencies have moved with the times these days and email the levy notice rather than use snail mail anyway. I suppose you could get narky with them if they want to pursue it and advise you will put forward a motion for another change of strata manager ( as a matter of principle) at the next AGM if they don’t back off. That reminds me, I have to draft a motion to propose a change of strata manager at my next AGM……….!!!!!
Hi, just be careful that any unpaid portion of an account from the body corporate manager on behalf of your body corporate may make you ‘unfinancial’ and therefor not entitled to any levy discount for any on-time payments (if you have such a scheme in-place), and exclude you from voting at any forthcoming AGM meeting.
You say you have always paid your levies on time, so you would know when the levies are due. I schedule my levy payments so I don’t have to think about levy notices. It may sound harsh but you have little ground to challenge the fee which I assume is interest, and does not go to the strata manager. If you don’t pay it you will be unfinancial.
… than have this middle aged crook take it
What does age have to do with anything?
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.
I’m sorry to say Sydney Cider that you don’t understand the strata law.
The levies are determined at the AGM and that is the only notice required by law. The meeting determines the quantum of the levies and when any instalments fall due. The usual practice in strata is for the treasurer to send a reminder notice to each lotbowner as the instalments become due.
The strata act also states that levies not paid more than one month late are charged a 10% per annum interest. This is not a charge the strata manager can waive.
If there are other late fees, they need to have been set up as a bylaw.
The only exception allowed under strata law is thst the OC can add the fees for collection of the debt. But this needs to have been passed at a general meeting.
Yep it’s tough when you get these surprises, but it seems to me the strata manager is just doing his duty.
Who would get this “late fee”, the OC or the agent? Wouldn’t you only be deemed “unfinancial” if you have not paid the levy and any interest accrued?
Who would get this “late fee”, the OC or the agent? Wouldn’t you only be deemed “unfinancial” if you have not paid the levy and any interest accrued?
The penalty interest goes to the owners corp admin fund. The strata manager may subsequently charge reasonable costs for recovery of debts but that would end up back in their coffers, one way or another.
My understanding is that your bill is not “unpaid” until the 30 days following the date of the invoice have expired but once that has passed, the statutory interest accrues from the date of the invoice.
In the case of loss of voting rights, this occurs if the owner has unpaid levies when the meeting agenda is issues and doesn’t pay them before the meeting is held.
Many strata managers deem payment to have been received when the money is in their bank accounts, to avoid ugly scenes such as unfinancial owners turning up at an AGM with personal cheques and demanding the right to vote.
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.
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