A body corporate’s right to recover a debt - SSKB - Strata Managers | Community Experts

A body corporate’s right to recover a debt

body corporate fees

Some of our SSKB committee members would be aware that previous legal cases have meant that the costs for chasing owners who do not pay contributions on time were accounted for separately in an Unliquidated Claims Register (UCR). This meant that unpaid contributions were not attached directly to the lot, giving these owners the avenue to avoid paying the recovery costs.

Recent legal opinion based on precedents set in the cases of Sunseeker and The Wave advise that the UCR approach is no longer required and debt collection fees can be placed directly on the lot account.  This will better place your body corporate to collect outstanding monies, in particular on the sale of the lot which in the past meant the body corporate was required to chase the prior owner.

This will save time and money and we should see more recovery costs collected. Using the principles established in these cases, the legal advice is to do away with the Unliquidated Claims Register and attach the costs directly to the lot concerned. Given this advice and the benefit to the body corporate, SSKB will implement this change unless you instruct us otherwise.

If you would like more detail about what this means for you then please visit the following links:

Levy Management Process  –  Policy For Recovery Of Contributions From Lot Owners In Arrears

Recovery of Outstanding Contributions – Recovery Costs

A Body Corporate’s Unique Rights In Recovering A “Debt”

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Recent Comments


Ric Culpitt On January 17, 2013 | Reply

Thank you for this information. I doubt that it is widely known within the industry. At last we have reverted to a sensible approach for the collection of outstanding levies.

I would like your consent to use this information and the policy therein for the education of my Certificate IV students and look forward to hearing from you.

Kind regards
Ric Culpitt

    Chelsey On January 18, 2013 | Reply

    Hi Ric,

    Thanks for your comment. Yes that’s fine – please let me know if you require any further details and i’ll send you what i can.

    Chelsey – cblount@sskb.com.au

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