Question: We have an owner with a decades-long history of arrears. Is seizure and sale of real property ever enforced in the courts? And if it’s not, what other options do we have?
I am on the owner’s council of a 24-unit scheme. One lot owner has a decades-long history of arrears, failed payment plans and broken promises. Last year, they stopped paying altogether, so we took legal action. The process has been drawn out and finally resulted in a payment plan that has again failed. Based on the history, it looks like the seizure and sale of assets is going to be the final solution.
Is seizure and sale of real property ever enforced in the courts? And if it’s not, what other options do we have?
Answer: I encourage strata companies to do whatever possible to prevent any levy arrears from getting to this stage.
Levy recovery can sometimes be a drawn-out process even when the steps taken are actioned promptly.
Seizure and Sale Orders (PSSO orders) are used to recover unpaid levies by a strata company. In recent years, I have witnessed successful recovery via seizure and sale in strata companies under our management.
A seizure and sale order, once issued by the court, allows the Bailiff to seize a property and sell it to recover the debt. Once the PSSO order is lodged with Landgate, it will prevent any other dealings on the property until the judgment sum is satisfied or the sale period expires (12 months from issue for the process with a saleable period of 6 months). The granting of the PSSO order is not guaranteed. If the judgment debtor can demonstrate hardship, a suspension order may be granted, delaying PSSO enforcement. Of course, a PSSO order does not necessarily only apply to property. The PSSO order can be applied to other assets. There are also certain assets that a PSSO order can not be applied to, for example, electrical goods used for family entertainment to a value of $300.
I encourage any strata company to engage a lawyer to assist in the debt recovery process and assist in the PSSO order process. A lawyer with a sound knowledge of the Civil Judgement and Enforcement Aact 2004, and preferably, with experience in the PSSO order process.
I encourage strata companies to do whatever possible to prevent any levy arrears from getting to this stage and offer the following suggestions:
- Take steps to ensure owner contact details are up to date.
- Pick up the phone and have a conversation with the owner in arrears as early as possible.
- Allow owners to enter payment arrangements and, express the importance of keeping up with those arrangements and continue to communicate their position.
- Review arrears report regularly.
- Adopt a debt recovery policy with clearly outlined steps and apply strict timelines for each step.
- Be prepared to incentivise debt settlement. Sometimes, offering to waive interest can help secure funds faster.
- Develop a strong working relationship with a lawyer who specialises in recovery action.
This post appears in the June 2025 edition of The WA Strata Magazine.
Luke Downie Realmark Strata E: strataperth@gmail.com P: 08 9328 0999