Question: Does the new debt recovery legislation nullify a strata scheme by-law that requires lot owners to pay debt recovery fees?
Answer: A by-law requiring a lot owner to pay the recovery legal costs without a Tribunal or Court order will be rendered inoperative.
Yes, the newly introduced Section 86(2AA) of the SSMA prohibits owners corporations from recovering their reasonable legal costs in levy recovery proceedings unless a Tribunal or a court orders those costs.
A by-law requiring a lot owner to pay the recovery legal costs without a Tribunal or court order will be rendered inoperative once Section 86(2AA) comes into force.
This post appears in Strata News #743.
Matthew Lo Kerin Benson Lawyers E: enquiries@kerinbensonlawyers.com.au P: 02 8706 7060