We’re hearing more and more reports about #stratatitle levy arrears growing as owners face financial pressures in a tougher economy with higher interest rates.
But, these @ABCNews reports highlight how strata levy arrears quickly escalate and end up in bankruptcy. They report that 10% of all bankruptcies are for strata debts.
It’s easy and tempting to take legal action for strata levy arrears because of the favourable interest earned, the ability to recover all legal costs, and, the presence of a real estate asset to liquidate. Plus, other strata owners can justify it because they paid their levies.
It’s a serious strata crisis in the making.
Watch the video below or read the article here …
#stratamadness
Fausto
As far as I know despite some disussion of the fairness of the strata levy recovery expenses issue, I’m not aware of any actual reform proposal.
The only formal guidance is in the NSW 2021 report which has 113 recommended changes [https://hdp-au-prod-app-nsw-haveyoursay-files.s3.ap-southeast-2.amazonaws.com/5716/9906/9234/bcd09f96dcc778897facbfe6bc583325_Department_of_Customer_Service_-_Report_on_Statutory_Review_on_Strata_Scheme_Legislation.pdf] says nothing about it and in fact recommends reducing the time for payment to 14 days for urgent levies.
if anything pops up, I’ll publish about it as I’m also interested in the issue.
Cheers
Francesco
Hi Francesco, where could I locate the proposed changes to the legislation in NSW that is expected this coming year regarding the plight of levy debtors?