SSKB, strata manager of the Body Corporate for The Wave, welcomes a Supreme Court ruling holding Westpac liable for outstanding levy recovery costs expected to be in the vicinity of $450,000.
Recently the Queensland Court of Appeal ended a lengthy legal battle between the Body Corporate for The Wave and banking giant Westpac.
Westpac, in its position as mortgagee, has been ordered to pay outstanding levies and the reasonable recovery costs to the Body Corporate for The Wave, with the total bill expected to be around $450,000.
The controversial aspect of this story is that the bulk of these costs were accumulated before Westpac took possession of the apartment.
The ruling confirms that liability for accumulated body corporate levies (including reasonable recovery costs) rests with the current lot owner, or mortgagee in possession. The liability is extended to debt and recovery costs incurred prior to the current owner coming into possession.
The Supreme Court ruling has been widely welcomed by the body corporate industry, as it provides certainty in what was previously considered a grey area of body corporate debt recovery costs.
SSKB community managers have assisted The Wave throughout the lengthy process.
SSKB Director Paul Wood said, “The legal proceedings have been long and draining on the community associated with The Wave. The Committee have always explored all options taking into account the best interest of all owners in relation to the non-payment of levies. They have handled the entire situation in a highly professional manner and I would like to congratulate the Committee and lot owners on the ruling.”
Paul adds “The decision additionally supports SSKB’s interpretation of the legislation and the processes it follows when dealing with non-payment of levies. I see it as a big tick of approval for the support and direction given by the SSKB Levy Management Team.”
Read the full decision at the Supreme Court Library.