QLD: Q&A Levy Debt Strategies for Dealing with Overseas Owners

This article is about QLD levy debt strategies for overseas lot owners.

Question: What options are available to pursue outstanding body corporate levies, given the lot owner resides in China and is significantly behind on payments?

We have a lot owner, believed to reside in China, who is significantly behind on their levies by over $100,000. Despite our efforts to serve court-ordered documents for payment, we’ve been unsuccessful in China as no one acknowledges ownership.

We’ve attempted to contact all known email addresses without success. The apartment is rented as part of our holiday pool, and the agent’s address we have on file has responded that they no longer act for the owner and to not contact them. How can we pursue the outstanding body corporate levies, as we’re in urgent need of resolution?

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Answer: If a defendant (in this case, the lot owner) is attempting to avoid service, or you are unable to personally serve them, the Court can permit them to be served in another way.

If a defendant (in this case, the lot owner) is attempting to avoid service, or you are unable to personally serve them, the Court can permit them to be served in another way. This is called substituted service.

To be successful in a substituted service application, the plaintiff (body corporate) must show:

It is impracticable to serve the documents in the usual way; and

Using the substituted method, the document must come to the knowledge of the defendant

For service to be “impracticable”, you must prove to the Court that personal service is not practicable and that, having made genuine and reasonable attempts to do so, the party has been unable to get the documents served, as required by the UCPR.

An application for substituted service must also provide evidence that the documents (and therefore the proceeding) will likely come to the knowledge and/or attention of the defendant.

Mahoneys regularly assists bodies corporate in obtaining substituted service orders in levy recovery matters.

Todd Garsden
Mahoneys
E: tgarsden@mahoneys.com.au
P: 07 3007 3753

This post appears in the April 2024 edition of The QLD Strata Magazine.

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