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.

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.

In a recent decision, NCAT has confirmed that it does not have power to impose monetary penalties on persons who breach orders made by NCAT.

This decision highlights an important flaw in the new strata legislation which needs to be fixed.

Read on to find out more – NCAT Strata Disputes Floors and By-laws.docx

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.

In a landmark ruling, NCAT has ordered an owners corporation to pay compensation to an owner for water damage to the owner’s unit caused by defects in the common property.

This ruling indicates that NCAT is able to resolve strata disputes by making compensation orders.

But has NCAT got it wrong? Read on to find out: NCAT Orders Owners Corporation to Pay Compensation

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

In a recent case, NCAT ruled against a short term letting by-law being passed for a Sydney apartment block.

So, was NCAT’s decision wrong?

Can an owners corporation pass a by-law that bans short term letting?

Read on to find out: NCAT Rules Against Short Term Letting By-law

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

Be aware that the deadline for owners corporations to review their by-laws under the new Strata Schemes Management Act 2015 is fast approaching with only 66 business days remaining.

The Act states that owners corporations have 12 months to review and register any current by-laws. This means every owners corporation must review their by-laws by the deadline of 30 November 2017.

For the next 66 business days, owners corporations that have not already done so are meant to consider whether to:

• Introduce new by-laws
• Amend any existing by-laws
• Repeal any by-laws

At JS Mueller & Co we have done hundreds of by-law reviews since the commencement of the new Act. We often recommend that new by-laws should be considered for the following topics:

• Airbnb
• Smoking
• Minor Renovations
• Major Renovations
• Common Property Memorandum
• Proxies
• Electronic Voting

Plan Ahead NOW. Don’t wait until it is too late.

Fixed Fee By-laws

Get your by-law review done now.We can review your by-laws in detail, suggest amendments to the existing by-laws and recommend new by-laws. We do all of that for a fixed fee. for your fixed fee by-laws.

Click here NOW for a fixed fee by-law review.

Template By-laws

We have developed a range of by-laws that cover various topics.

Order a copy of our by-law templates here NOW Strata By-law Templates

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

Can an owners corporation be forced to make modifications for disabled residents in its strata scheme?

Does it depend on the specific circumstances of each strata scheme?

Read on to find out: Strata Disabled Access

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