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
- 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—
- a wilful or negligent act or omission of a member of the corporation, or an occupier of the member’s unit; or
- a breach of its rules by a member of the corporation, or an occupier of the member’s unit.
- The amount spent or the cost of the work is recoverable by the owners corporation from the member as a debt.
- 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.
- 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