Question: Some lot owners missed levy notices because they were in junk mail. The committee agreed to waive interest charges, but not the late payment fee. What late levy fees can be charged to lot owners?
Several owners complained at being charged late payment fees and interest due to non payment of their levies. They claimed levy notices had not been received. All affected owners used Gmail. The levy notices were located in junk mail.
The committee took the view that the levy notices had been delivered to the owners even though they had been in junk mail.
The committee agreed the BC Managers had followed due process and were not responsible. The committee agreed to waive interest charges, but not the late payment fee, since this was a legitimate charge by the BC Managers. What late levy fees can be charged to lot owners?
Answer: A body corporate can charge interest at 30% per annum (2.5% per month) and also its reasonable legal costs in recovering levies.
That’s sounds ‘reasonable’ to me.
The legislation in Queensland says that interest can be charged at 30% per annum (2.5% per month) on overdue levies. A body corporate can also recover its reasonable legal costs in recovering levies. Charging outside those amounts is arguably outside the legislation but that might depends on the arrangements the body corporate has in place. That would need to be reviewed before a properly informed comment could be made.
Frank Higginson Hynes Legal E: frank.higginson@hyneslegal.com.au P: 07 3193 0500