Wednesday, September 30, 2020

Strata Schemes Management Act 2015 No 50

Part 5
Division 2
Section 86

Recovery of unpaid contributions and interest | Section 86

(1)  The Tribunal may order the owner of a lot in the strata scheme, or other person, to pay a contribution that is payable by the owner or other person under this Act that is not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.

(2)  The Tribunal may make an order under subsection (1) only—

(a)  on the application of the owners corporation, and

(b)  if proceedings between the owners corporation and the owner of a lot in the strata scheme or other person are pending before the Tribunal.

(2A)  An owners corporation may, without obtaining an order under this section, recover as a debt in a court of competent jurisdiction, a contribution not paid at the end of 1 month after it becomes due and payable, together with any interest payable on that unpaid contribution and the reasonable expenses of the owners corporation incurred in recovering those amounts.

Note.

Clause 6 of Schedule 4 to the Civil and Administrative Tribunal Act 2013 provides for the transfer of proceedings between the Tribunal and a court which has jurisdiction (and vice versa) if the parties to the proceedings agree or if the Tribunal or court of its own motion or on the application of a party so directs.

(3)  Interest paid or recovered forms part of the fund to which the relevant contribution belongs.

(4)  An owners corporation must not take action to recover an amount under this section unless it has given the person against whom the action is to be taken at least 21 days notice of the action.

(5)  The notice of the action must set out the following—

(a)  the amount of the contribution, interest or expenses sought to be recovered,

(b)  the recovery action proposed,

(c)  any other matter prescribed by the regulations for the purposes of this subsection.

© State of New South Wales Department of Customer Service. For current information go to www.nsw.gov.au.

Disclaimer: Reproduced from the Strata Schemes Management Act 2015 . This website does not give legal advice or other professional advice. You should seek legal or other professional advice before acting and not rely on any of the content on this website.

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