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Owners Corporation vs Lot Owners – Pay OC Levies!

It has been said that Non-payment of Owners Corporation levies is quite common in Victoria, according to specialists in Owners Corporation law.

Some Owners Corporation Managers have been engaging the services of debt collection companies to send letters of demand chasing payment of the Owners Corporation levies, when lot owners do not pay their fee notices. Some Managers have also been passing on  the debt recovery cost of the service to the lot owner.

A lot owner may be successful in challenging the debt recovery cost at the Victorian Civil and Administrative Tribunal (VCAT). Therefore, the Owners Corporation runs the risk of having to bear the cost instead. Additionally, those costs being claimed by the Owners Corporation

Should a lot owner not pay the levies set out in their Owners Corporation Fee Notice within 28 days of it being issued, the correct procedure is for the Owners Corporation to send out a Final Fee Notice. If this is not attended to by the lot owner immediately, then 28 days after the Final Fee Notice was issued, the Owners Corporation is entitled to initiate proceedings at VCAT to recover Owners Corporation levies, interest and legal costs.

Are you an unhappy lot owner or an Owners Corporation manager in need of legal advice? Contact our team at Porto Grace & Drew (“PGD”) Lawyers 03 8790 4533.


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