In a recent Law case JS Mueller & Co Lawyers acted for the successful owners corporation for a levy recovery matter from an owner who had disappeared.

Did you know that in NSW a court judgment obtained against a lot owner for outstanding levies, interest and costs can be enforced in several ways? This will depend on the amount involved and what assets, if any, the owner holds.

One way of enforcing a judgment for at least $10,000 is by issuing a writ against the owner’s property.

So, what was the outcome of the levy recovery Law case? Levy Recovery and Writ of Execution

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

The strata legislation contains a number of requirements which must be met for any AGM.

These include requirements for the AGM agenda to contain certain motions and for the AGM notice to be accompanied by various documents.

So, what happens if these requirements are not met? Is the AGM invalid?

A recent decision of the Supreme Court provides helpful guidance on this issue – Supreme Court Strata AGM Guidance.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

Thanks strata for attending our recent forum. In the busy and hectic world of strata, we appreciate you taking the time and effort to join us.

We hope you enjoyed the forum as much as we did presenting and sharing our knowledge.

As promised, please find below copies of all presentations and papers.

If there is anything we can assist you with please do not hesitate to contact us here or one of our lawyers below.

How have the New Laws Shaped Up?

Warwick van Ede 
The Dawn of a New Era  I  Strata Renewals  and Collective Sales  Presentation and  Paper

Daniela Terruso 
How to Avoid the Pitfalls and Correct the Mistakes  I  By-law Reviews  Presentation and Paper

Faiyaaz Shafiq
The New Procedures and Traps for Young Players  I   Levy Recovery  Presentation and Paper

Adrian Mueller
Goodbye, Thoo  I  Novel Compensation Claims Against Owners Corporations Presentation and Paper

Adrian Mueller
How to Make You Look Good  I  The 5 Most Useful By-laws Presentation and Paper

Helen Amanatiadis
The New Regime  I  Building Bonds and Inspection Reports  Presentation and Paper

Adrian Mueller
The Good, Bad and Ugly  I  The New Strata Laws Presentation and Paper

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.

We’ve been receiving a few enquiries in regards to the rules for levy recovery and payment plans under the new strata legislation.

You may recall late 2016 the new laws came into play giving lot owners the specific right to request an owners corporation to agree to a payment plan for any levies in arrears.

However, before a levy recovery payment plan can be put into place,  the owners corporation must accept the payment plan at a general meeting.

Therefore any lot owner who wants to pay their levies by instalments through a payment plan has to do the following:

1. Make a request (supported by owners who hold at least 25% of the unit entitlements) to the owners corporation to hold an EGM at which the owners corporation will consider the request of the lot owner to enter into a payment plan.
2. Pay the costs of holding the EGM at which the owner wants the payment plan to be approved.
3. Explain to the owners corporation why the payment plan should be approved to convince other owners why they should be given more time to pay their levies.
4. Have the payment plan approved at the EGM or alternatively, wait until the AGM for the plan to be approved.

Important

It’s important to note that by holding an EGM it is not guaranteed that the request for the payment plan will be approved as the entry into a payment plan is a discretionary matter for the owners corporation and it is not a mandatory requirement that such a plan has to be accepted.

Conversely, an owners corporation in a deserving and genuine case may decide to accept a request for a payment plan provided the owners corporation is of the view that the plan is likely to be adhered to and is fair and reasonable.

If a request for a payment plan is refused the lot owner may decide to take legal action in NCAT to ask for more time to pay their levies (but this would be unusual) or seek orders from the Local Court to permit the levies to be paid by instalments.

Any payment plan approved by an owners corporation cannot extend beyond 12 months and still does not prevent the owners corporation taking legal action against the lot owner to recover overdue levies.

For the full details of the new levy collection laws read our paper – Levy Collection New Laws

For NSW levy collection or strata legal advice please contact us here or call 02 9562 1266, we’re happy to assist.

JS Mueller & Co has been serving the strata industry for almost four decades, since 1979, and as our business grows, so does our team of strata experts. As such, we’re proud to announce the addition of three new strata lawyers to our team.

Adrian Mueller partner JS Mueller & Co said “our team of strata lawyers is growing fast and we pride ourselves on recruiting experts with the right mix of experience and knowledge helping us to continue to expand our presence as a leader in the strata industry. We’d also like to thank our existing clients for their ongoing support.”

“In my 40 years as senior partner of our firm I have not experienced a team of lawyers as proficient as the team we have today. I am proud that we are able to provide unparalleled service to our clients from the best strata lawyers in NSW”, said Jeffrey Mueller.

Please join us in giving a warm welcome to our newest team members.

Warwick VanEde I Lawyer I 28 Years I Strata Law I Property Law I Litigation
Warwick is a NSW Law Society Accredited Specialist in property law who has significant experience advising on strata and community title developments. He has a focus on providing assistance to developers and owners corporations including drafting by-laws, community and strata management statements, conveyancing and all aspects of strata law. He is also an accomplished litigator having appeared as advocate in most senior courts in NSW. Full profile.

Helen Amanatiadis I Lawyer I 20 Years I Strata Law I Property Law I Litigation I Construction
Helen has extensive experience acting for owners corporations, particularly in relation to construction related matters. Her experience includes building contract negotiations, preparing payment schedules and adjudication responses in security of payment claims by contractors against owners corporations, and acting in building contract and defects disputes. Helen also advises on insurance claims, easements, compulsory acquisitions, strata disputes and by-laws. Full profile.

Daniela Terruso I Lawyer I 15 Years I Strata Law I Property Law
Daniela has significant experience in providing legal services to owners corporations and developers in a wide variety of areas. Her background includes working on the acquisition of development sites and preparation of off the plan contracts, by-laws and management statements for vacant land, housing and strata and community title developments. Daniela also specialises in drafting complex by-laws. Full profile.

Our Team
We are continuing to build our team. In our view, there is no substitute for experience and that is why we have assembled a team of lawyers that have real expertise in strata law. As our firm further grows, you can expect that we will continue to keep you up to date with all of the latest developments in strata law.

If you are interested in working for JS Mueller & Co Lawyers please send us a covering letter and resume.

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

Must strata lot owners pay, as part of their levies, maintenance of the common property they do not use?

Are all strata owners responsible for paying for the maintenance of every part of the common property even if some owners cannot or do not use part of the common areas?

Is it possible for an owners corporation to raise a differential contribution that is levied on some but not all owners or is levied in shares that are not proportional to the unit entitlements of the lots?

Here are some typical examples where owners often query if they should pay for maintenance of these areas:

• A strata scheme that contains multiple stages – should they pay for stage 2 if they’re in stage 1?
• The owner of a ground floor lot who does not use a lift servicing the upper levels of the building
• The owner who does not use recreational facilities such as a swimming pool, gym or tennis court

Are these exceptions or are common areas in strata residential blocks treated as a whole?

Read this paper to find out the true position – Common Property Use and Differential Levies in Strata Blocks

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

During times when owners suffer financial difficulty, owners corporation can often find themselves out of pocket with overdue and unpaid strata levies. This can be a huge concern to strata communities, especially if an owner declares bankruptcy and they face the possibility of missing out on payment of any overdue strata levies or recovery costs.

So when can an owner who does not pay strata levies on time be made bankrupt? And what happens once an owner is bankrupted?

Bankruptcy is a legal process that can occur when an individual cannot pay their debts as and when they fall due.  In Australia bankruptcy is governed by the Bankruptcy Act 1966 (Cth) and is regulated by the Australian Financial Security Authority (AFSA).

Once a person becomes bankrupt, control is given up of their finances and assets to a Trustee in exchange for protection from legal action being taken against the person by an entity to which they owe money.

So, what happens when a lot owner is unable to pay their strata levies? Can they be bankrupted?

Bankrupting an Owner

• A bankruptcy notice can be issued in the event that an owner owes strata levies, is sued by the owners corporation, and judgment is entered against the owner for more than $5,000.
• Usually, we will exhaust all avenues for recovery of outstanding strata levies before seeking the strata manager/owners corporation’s instructions to bankrupt the owner.
• However, if the judgment debt is significantly higher than $5,000, the strata manager/owners corporation would normally provide an instruction for us to move to bankrupt the owner immediately after entry of judgment against them.
• Upon receipt of instructions, we perform a bankruptcy search to ensure the owner has not already been declared a bankrupt.
• If the owner is not already bankrupt, we draft and file a bankruptcy notice with the Australian Financial Security Authority – the current filing fee is $470.
• Once filed, we then serve the bankruptcy notice on the owner.
• Then, the owner has 21 days to make payment of the amount claimed in the bankruptcy notice.
• If the amount claimed remains unpaid after 21 days, we seek the strata manager/owners corporation’s instructions to issue a creditor’s petition to commence court proceedings to make the owner bankrupt.
• If the strata manager/owners corporation instructs us to proceed, we commence bankruptcy proceedings in the Federal Circuit Court against the owner.
• If the Court makes an order for the owner to be declared a bankrupt, a Trustee is appointed to the owner’s estate.

What happens once an owner is bankrupted?

• The Trustee obtains information about the owner’s financial circumstances including any assets owned by the owner and any liabilities of the owner.
• After completing his or her investigations, the Trustee will normally move to sell the owner’s assets to pay the liabilities owed by the owner.
• This often involves the Trustee obtaining possession of the owner’s strata lot and selling the lot.
• Once the lot is sold, the owners corporation is normally paid the overdue levies, interest and recovery costs.

For NSW levy collection or strata legal advice contact us here or call 02 9562 1266, we’re happy to assist.

We all know that raising and receiving strata levy funds for building maintenance and scheme administration is fundamental to an efficiently run strata complex.

That’s why it’s imperative that any strata levies in arrears are recovered in a timely manner to ensure that sufficient funds are always readily available.

So what is the process for:

1. Levy Issues
2. Levy Payments
3. Levies in Arrears
4. Collection of Levies in Arrears

To find out download our paper here NSW Levy Debt Collection Process

Specialist paralegals and lawyers are not only expert collectors and negotiators; they are highly skilled in all essential aspects of levy recovery.

Speak to the specialist NSW levy collections experts here or call 02 9562 1266, we’re happy to assist.

After becoming a monk, a landlord in Sydney, named Law Siek Hong, “gave up” his property and disappeared in Malaysia, leaving a large levy debt behind.

Law Siek Hong property is located in Darlinghurst, the owner of the property committee spent 12 years, more than 60,000 Australian dollars (RMB300,000) trying to find him, forcing him to pay a cumulative tax of more than 280,000 Australian dollars (RMB1.4 million).

Recently, the owners committee won a supreme court suit, debuting the apartment for the first time by auctioning off the debt.

Senior lawyer, JS Mueller & Co, Faiyaaz Shafiq said: “This is a big issue in Australia because some overseas buyers are usually from Asia, but they never live in it and no one knows where they are and they are usually hard to find.”

To read the full Sydney Morning Herald Domain article click here.

For NSW strata legal or levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.

Thanks Strata, as a wrap up here are some useful links from 2017…

• We shared our strata knowledge through our new resource library
• We listened to you and launched our new brand and website
• We developed strata by-law and meeting templates for the new strata laws
• We tweeted, 54 times sharing the latest in strata law
• We posted, 45 times on LinkedIn with the latest updates
• We collected for over 600 new levy debt recovery matters plus our regulars
• We expanded our team to better service the strata industry

We’re taking a break from 5.30pm 21 December 2017 and returning on 15 January 2018.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2018.

For NSW strata legal or levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.