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NSW: Can owners corporations recover lawyer and debt collection costs from defaulting owners?

NSW strata information

Question: When recovering late levy payments, can the Owners Corporation recover the costs of using a lawyer/debt collector from the recalcitrant owner?

In a previous response you mentioned that when recovering late levy payments, the fourth letter of Demand should be “by lawyer/debt collector”. Who is preferred in the first instance, a lawyer or a debt collector, and why?

Can the Owners Corporation recover the costs of using a lawyer/debt collector from the recalcitrant owner?

If the services of a lawyer become necessary, do the lawyers charge their fees to the Owners Corporation or do they pass their fees on to the recalcitrant?

Answer: The lawyer’s fees are recoverable from the defaulting owner and form part of the overall debt.

Our practice is that the first three letters of demand are issued by our office and, if they do not generate a satisfactory response, then a lawyer is engaged to either elicit a response or commence debt recovery proceedings.

The lawyer’s fees are recoverable from the defaulting owner and form part of the overall debt.

This post appears in Strata News #469.

Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440

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