Owners Corporations and strata managers in NSW sometimes wonder how they can recover outstanding strata levies from owners of strata units who have disappeared and are nowhere to be found. Well, do not be disillusioned.

Muellers has now given hope to owners corporations and strata managers and has proved the naysayers wrong acting in what has been widely reported as the first ever sale of a strata unit by the NSW Sheriff.

In the recent case of The Owners-Strata Plan No. 7396 -v- Siak Hong law (unreported), in which Muellers acted for the successful owners corporation, the Supreme Court of NSW ordered that documents be served on a unit owner who was unable to be found, via substituted service orders.

More importantly, the Supreme Court also ordered the NSW Sheriff to sell the owner’s unit by a certain date to ensure the sale of the unit and recovery of overdue levies was not delayed.

This case shows that overdue levies can be recovered from an errant unit owner and that it is possible to force the Sheriff to sell a strata unit to ensure that overdue levies are paid to an owners corporation.

The outcome we achieved in the case was the result of much hard work, sheer determination and a never say die attitude to demonstrate that even in the most difficult cases it is possible for overdue levies to be recovered.

Setting a precedent, the case was also picked up by mainstream media:

• Sale of apartment owned by monk who disappeared overseas sets legal precedent
• Merry chase for mystery Malaysian monk who renounced his ‘worldly possessions’

At Muellers that is the approach we take to all our levy collection matters and that is why we are widely regarded as the leader in strata levy collections.

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

Did you know that the Sheriff can play an important role in the recovery of overdue strata levies?

How, you ask?

1. The Sheriff can be a very important ally when an owner fails to pay their strata levies, ignores repeated requests for payment and all else fails. So let’s bring in the Sheriff! Here’s how:

A Sheriff may act on a writ that we have arranged for the court to issue. Firstly, the Sheriff will attempt contact with the debtor via phone or written correspondence. If there’s no response the Sheriff will attend the debtor’s property and seize assets to be sold at auction to cover the value of the levy collection debt.

Sheriffs have been known to seize cars, bikes and household goods etc. This is called a ‘Sheriffs sale’ – it’s important to note that sometimes these can take time.

On a positive note, often just the Sheriff turning up on the debtor’s doorstep will action them into paying their strata levies.

2. Also, upon obtaining a Supreme Court Order for possession of a property, the Sheriff can then take possession of the property so it can be sold to pay the strata levy debt.

3. Sheriffs can also assist when the debtor has ignored an examination order to attend the court to explain his or her financial circumstances, an arrest warrant can be issued and the Sheriff can then arrest the debtor and take them to the court to be examined.

This can assist you in ascertaining the debtor’s financial circumstances and obtaining employment information so you can take further action and garnishee wages for payment of the outstanding strata levies.

So, how can you help?

Phone Numbers

Did you know that all Sheriff matters initially now go to the COU? From here, the Sheriff will attempt to make contact with the debtor via written correspondence and phone calls.

So, if you’re able to provide the debtor’s phone numbers at this point the Sheriff will more than often get a much better result.

Licence Plate Numbers

If the Sheriff has had no luck when phoning the person they will visit their premises during business hours and if the person isn’t available (as most people aren’t during these hours) they will leave a business card requesting them to call the Sheriff’s office.  Clearly, this is often ignored by the owner who is choosing not to pay their outstanding strata levies.

Again, if you can provide us with the licence plate number of the car the owner drives there is a strong chance that this will help us (and the Sheriff) locate the debtor quicker and recover the outstanding strata levies.

So, the Sheriff can be very effective in being that extra length of the stick to ‘poke the bear’ – and yes, some strata levy debtors will respond to the Sheriff even though they’ve already ignored repeated requests for payment of overdue levies.

Oh, and did you know…

Some interesting historical information on what was once part of a Sheriff’s role in NSW. They were once responsible for:

• Carrying out death sentences in criminal cases
• Discharging the duties of the Coroner
• Running the gaols
• Executing all the judgments, decrees and orders of the Supreme Court

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

It has come to our attention that many of the 21 day notices sent by strata managers to owners in levy arrears that are based on templates prepared by certain software providers are not compliant with the new legislation.

• An owners corporation cannot take legal action against an owner in levy arrears until it has sent the owner a 21 day notice that complies with the new legislation.
• It is therefore vital that your 21 day notices comply with the legislation in order to ensure that strata levy arrears are able to be recovered for any owners corporation you manage.
• Don’t get caught out! Use our 21 day notice that is compliant with the new legislation.

Why do we love them so much?

Because Garnishee Orders are the most effective way to recover outstanding levies.

So, what is a Garnishee Order?

• A Garnishee Order is an order from the Court ordering someone else to pay us money on behalf of the debtor
• They are issued against someone who we know is holding money for the debtor or owes money to the debtor. We can garnishee:
• A bank account if we know the details of their bank account
• Their wages if we know where they work
• Rent from their investment unit (not necessarily the unit in levy arrears)

When can we issue a Garnishee Order?

• Garnishee Orders can ONLY be issued after we have obtained Judgment – they are one of the ways we can enforce a Judgment and are the BEST option available

How can you help?

To help us recover your outstanding levies faster, when you give us instructions to collect overdue levies, if known, always provide the following details about the debtor:

• Their bank account details
• Their employment details
• Details of any of their investment properties

So next time you brief JS Mueller & Co on a levy recovery matter don’t forget to provide us with those extra little details.

Click here for the full details of the new Levy Collection New Laws

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

At JS Mueller & Co we know how to poke the bear!

How, you ask?

Well, we know how to approach or should we say, poke, a lot owner who does not pay their levies on time.

Knowing the right approach can often reap the rewards. That’s where JS Mueller & Co’s 40 years experience comes in handy.

There are many types of bears but in general, we can narrow them down to three types. Check them out here:  Levy Debt Collections

Need a levy collection debt recovery or strata law advice contact JS Mueller & Co today on 02 9562 1266 or click here now.

PS: No bears were harmed in the making of this :).

Did you know that the information an owners corporation has about their owners can actually make it much simpler for us to act more effectively in recovering strata levies?

To assist you with the details that can help us, the team at JS Mueller & Co has developed a handy list of items for consideration when briefing your next strata levy debt recovery instruction:

1. If you know that the unit is tenanted but the address for service of notices is at the unit, let us know, particularly if you’re aware of whom the real estate agent is.
2. When advising your levy recovery person to enter Judgment and take the next step, the following information can greatly assist:

•  Details of where the lot owner works so JS Mueller & Co can organise to garnishee their wages – much cheaper and more effective than a Sheriff.
• Details of their motor vehicle type and registration number and a time they’re normally home – this will make it easier for the Sheriff to seize goods.

Historically when matters have been difficult to serve, the information an owners corporation has access to, can assist us greatly in a successful and quicker levy debt recovery.

Here are some examples of how information has assisted JS Mueller & Co in faster recovery of strata levies… who would have thought!

 Hockey Training

We’ve successfully served a guy with a Statement of Claim (SOC) at hockey training.  All because the owners corporation advised us that he rode his bike once a week to hockey training.

Pony Club

JS Mueller & Co was able to serve another woman at Pony Club when we were advised by an owner/occupier that she stored her Pony Club stuff in the garage.

So, you can see little pieces of information an owners corporation knows about a lot owner can provide us the little piece of magic we need to get a successful result.

Keep the list above in a handy place for when you next provide a levy debt recovery instruction.

Our levy collection service is available across regional and metropolitan NSW so let us know if you need any assistance with levy recoveries, we’d be happy to assist.

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

Did you know that JS Mueller & Co can save you loads of time and money and recover your strata levy arrears faster?

How, you ask?

We have been recovering strata levies for over 30 years so we know all the tricks!

We have paralegals who do nothing but levy debt collection. They often spend an enormous amount of their day researching a bad debtor to find information to allow you to recover overdue levies faster.

To find these details we’ll spend time searching for any media articles, reviewing social media sites and generally hunting around the internet for any clues as to their place of work and living arrangements and, any other information which will help us locate the debtor.

This often turns up information about a debtor’s employment or tenant. We then use that information to contact the debtor, issue garnishee orders or just to get your levies paid quicker!

So, how can JS Mueller & Co save you time and money in the levy collection debt recovery process?

It’s simple. Often you’ll already know this information and if, at the time of instruction these details are provided to us that will save time and money, resulting in much faster levy collection debt recoveries.

Here’s a quick list of the helpful information about a debtor you can provide us, that’s if you know them, when providing your next levy collection instruction to us.

• Employment Details
• Tenant Details
• Real Estate Agency
• Real Estate Property Manager Details
• Media Stories

Click here for the full details of the new Levy Collection New Laws.

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

Thank you Strata for your support in 2016, we loved sharing our knowledge on all things Strata Law.

As a wrap up here are some useful links from 2016…

• We shared our knowledge at Forums throughout the year
• We tweeted, 107 times sharing the latest in strata law
• We developed Strata By-law Templates for the new strata laws making it easier for you
• We posted, 30 times on LinkedIn with the latest updates
• We improved our Levy Collection App, thanks to your feedback
• We shared our knowledge through 54 newsletters
• We expanded our team to better service the strata industry

We’re taking a break from 23 December 2016 and returning on 9 January 2017.

We wish you and your families a safe and happy ‘Festive Season’ and look forward to working with you in 2017.

For more information check out muellers.com.au or send an email to enquiries@muellers.com.au and we’ll get back to you on our return.

With the introduction of the new strata laws, you’ll need to be aware of the key changes to the levy collection procedure.

To familiarise yourself with the top 10 changes click here –  Levy Collection Changes Under the New Strata Laws

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

October 2016 the JS Mueller & Co team presented to the strata industry on the new strata laws ‘Are you Prepared for the New Strata Laws?’ This is in preparation for the new Strata Schemes Management Bill 2015 and the Strata Schemes Development Bill 2015 due to commence 30 November 2016.

The JS Mueller and Co team presented:

• James Moir: Works By-laws – How will they operate under the new laws?
• Adrian Mueller: Meetings – What are the changes under the new laws?
• Faiyaaz Shafiq: Levy Collection – Procedural changes under the new laws?
• Anna Minassian: Building Defects – What impact will the new laws have?
• Trish Smith: LevyCollect – How can it benefit you?

Please click below to view presentations and papers:

JS Mueller & Co New Strata Laws Forum Presentations_Oct16
JS Mueller & Co Forum Papers_Oct16

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