Body corporate debt recovery is required when lot owners do not pay their levies.
Owners must pay their levies when they fall due. When levies aren’t paid, a body corporate has a statutory obligation to commence proceedings to recover the unpaid amounts from the owners.
Levies are calculated based on the:
Budget that the owners approved at a general meeting;
Lot entitlements in the community management statement.
A lot owner is obliged to pay their levies if they have been validly issued, and a body corporate is required to recover outstanding levies. A body corporate can claim reasonable recovery costs when taking court action. This includes the costs incurred by the body corporate manager and legal costs in relation to levy recovery.
Common service provide for past clients
Letters of demand
Instituting court proceedings to recover levies
Challenging levies that were invalidly issued