Has anyone got any experience recovering unpaid strata levies from one of the owners of a group? We have one owner who owes around $6k and while we know they are still there, no-one ever sees them and the debt collection agency employed by the strata manager has had no luck and is recommending legal action which could be costly… (they can’t take it to small claims although the owners could)… has anyone been in this situation? We would rather avoid court but it is hard when they owner concerned cannot be contacted. Would love some input from anyone who has been there. Thanks heaps.
In Tassie we can take it to small claims if it’s under a certain amount. Costs less than a couple of hundred dollars to lodge and usually has a better/quicker outcome than a debt collection agency.
I’d write to the owner first giving them x days to pay and advise that court action will be the outcome if they don’t.
Is they’re anything they’re paying for (or not) in the strata fees that you could withdraw from them? May need to get advice on the legalities of doing so in relation to the body corporate rules etc. but that may motivate them to contribute their fair share.
I hope you have a good outcome.
The strata corporation should just lodge a statement of claim to recover the money. Not much of a defence if money is legitimatelt owed. The property could eventually be aeized to recover the money owed.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Does it even matter if the costs to recover are expensive? eg don’t the defendants have to pay the costs to recover?
Once the apartment is sold costs will come out of that, eg first step is warn them legal costs are about to be incurred if not paid within XY days.
First step would be to issue a letter of demand.
Costs can be awarded against the unit owner but the full costs may not be recovered.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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