ACT: Can an owners corporation recover legal costs from an owner?

This article discusses when an owners corporation can recover legal costs from an owner under the ACT.

Question: Can owners corporations recover the legal costs incurred when chasing up outstanding monies from owners?

Answer: This is covered under Section 31 of the Act.

The relevant legislation is governed by the Unit Titles (Management) Act 2011 (including recent amendments) – November 2020.

Relevant section below – Section 31 (4).

31 Recovery of expenditure resulting from member or unit occupier’s fault

1. This section applies if an owners corporation for a units plan has in carrying out its functions incurred an expense, or carried out work, that is necessary because of—
   
   1. a wilful or negligent act or omission of a member of the corporation, or an occupier of the member’s unit; or
   2. a breach of its rules by a member of the corporation, or an occupier of the member’s unit.
2. The amount spent or the cost of the work is recoverable by the owners corporation from the member as a debt.
3. If the owners corporation recovers an amount under subsection (2) from a member for an act, omission or breach of an occupier of the member’s unit, the member may recover the amount from the occupier as a debt.
4. In this section:
   
   • expense, includes a reasonable legal expense reasonably incurred, including a legal expense relating to a proceeding in the ACAT.
   • work, carried out by an owners corporation, means maintenance or anything else the corporation is authorised under this Act to do.

This post appears in Strata News #643.

Jan Browne
Bridge Strata
E: jan@bridgestrata.com.au
P: 02 6109 7700