Does the new debt recovery legislation nullify a strata scheme by-law that requires lot owners to pay debt recovery fees?
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.
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Matthew is a Partner of Kerin Strata Lawyers. He graduated Laws from UNSW with Honours and has practiced as a solicitor since 2014. He has acted for and advised clients in a range of matters, including in disputes with respect to strata, building & construction, insurance, contracts, trusts, consumer law, and class actions. He is a Member of the Australian College of Strata Lawyers (MACSL).
In addition to legal practice, Matthew is a frequent contributor to LookUpStrata, the Law Society Journal, and Ethics & Standards Quarterly. He was also a contributor to Wolters Kluwer’s Australian Company Law Commentary and an author to LexisNexis’ Practical Guidance for Total and Permanent Disablement Insurance.
Matthew is an active member of the Law Society of New South Wales and was appointed by the President of the Law Society of New South Wales to its: Business Law Committee since 2021, where Matthew has particular interest in building and construction legislation and strata legislation; and Costs Committee since 2023. In 2024, Matthew was awarded Highly Commended Committee Member of the Year by the Law Society.
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