Earlier this week, the NSW Government announced plans to make new laws to improve the building and construction industry.

The Government intends to introduce laws that will make builders liable for defects in a wider variety of circumstances.

One of the key announcements is the Government’s plan to impose on builders a duty of care to enable owners corporations of commercial and mixed use buildings to take action against builders for defects.

The Government also proposes to: require builders and designers to be registered; require designers and engineers to declare that building plans comply with the Building Code of Australia; and force builders to declare that buildings have been built according to their plans.

There is also a proposal to appoint a Building Commissioner to take over part of NSW Fair Trading’s role in the building and construction industry.

The Government’s announcement comes hard on the heels of the public outcry following the recent problems experienced by owners in Sydney’s Opal Tower.

The announcement acknowledges that there are significant problems in the building and construction industry and indicates that the Government proposes to adopt most of the key recommendations made in the Shergold Weir Report.

With a State election just around the corner, it remains to be seen if anything comes from the Government’s announcement. We will certainly watch on with interest.

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.

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.

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 :).

Current Position

Under the current law there are no legal rights for lot owners to request an instalment payment plan from an owners corporation should they fall behind in their levy payments – although an instalment plan is sometimes agreed to by an owners corporation in an appropriate case.

New Position

As of 1 December 2016 the new laws will give a lot owner the right to request an owners corporation to agree to a payment plan for any levies in arrears. Before the owners corporation can accept a payment plan they will need to have such a request properly approved at a general meeting.

The lot owner will have to do the following:

1. Make a request 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. The lot owner may be required to pay the costs of holding the EGM at which the owner wants the payment plan to be approved.
3. The owners corporation will then consider the payment plan at the EGM.
4. Alternatively, an owners corporation can approve a plan at an AGM.

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 will have 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 more likely to be adhered to.

An owners corporation will have to be aware that if a request for a payment plan is unreasonably refused the lot owner may decide to take legal action against a refusal and seek orders from a Court of Law or Tribunal forcing the owners corporation to enter into a payment plan.

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

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

Trial Our FREE Time Saving LevyCollect App…

Our levy collection service is second to none with our integrated  ‘LevyCollect’ app. Simple, free and easy to use – accessible through your device, on the go. Benefits include:

• Reduces your workload – gives you time back
• 24/7/365 access from your desktop, laptop, smartphone or tablet – anytime, anywhere
• Gives you greater access to your Levy Collection matters
• You choose when to access your matters
• All of your matter communication conveniently located in one place
• Regular reporting – you choose when and how often you receive reports
• Simple, easy to use app for your phone or tablet and portal login for your desk/laptop

To trial our FREE LevyCollect online portal and app service contact jsmmarketing@muellers.com.au

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

The JS Mueller & Co team takes pride in providing you with an unparalleled service, comprehensive knowledge and in-depth experience in all aspects of levy collection and strata law. Our levy collection service is second to none with our recently integrated  ‘LevyCollect’ app. Simple, free and easy to use – accessible through your device, on the go. Benefits include:

• Reduces your workload – gives you time back
• 24/7/365 access from your desktop, laptop, smartphone or tablet – anytime, anywhere
• Gives you greater access to your Levy Collection matters
• You choose when to access your matters
• All of your matter communication conveniently located in one place
• Regular reporting – you choose when and how often you receive reports
• Simple, easy to use app and/or log in

If you’d like to trial our new FREE simple to use LevyCollect app contact us at jsmmarketing@muellers.com.au

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

The Supreme Court of NSW has recently held in two cases involving JS Mueller & Co that a bankrupt lot owner will not be entitled to a stay of an eviction from their strata unit where it is clear that the owner has made no attempt to pay overdue strata levies.

Please click here to view the full article – Stay of Eviction Refused for Levy Debtors

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