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Spiralling Body Corporate Levies – Proactive or Reactive?

Body Corporate Lawyers Cannonvale & Bowen

It’s no secret that many people buy into community title developments without necessarily appreciating all of their costs. On top of this, catastrophic weather events such as cyclones and floods have resulted in staggering increases in insurance costs, described as ranging from substantial to outright unviable.

It’s also no secret that some lot owners will … not may … struggle with payment of increased levies. Armed with this inevitability, it’s crucial that bodies corporate face this nacent problem head on practively to avoid their own catastrophes.

Debt collection should not be the first lever to pull, and frankly, going through the stock warning letters is not always going to yield favourable results. We’ve seen it have the opposite effecrt, driving those owners already on the edge further into denial territory.  

Instead, proactive committees have an opportunity to be actively inviting lot owners who may struggle with increased levies to discuss alternative payment plans to try to avoid unnecessary legal cost. It may involve an extra step or two by way of extraordinary meetings but the alternative is legal spend and we know who wins…

Although some circumstances may require immediate and urgent action, as a general rule internal management avenues should be completely wrung out before pressing the legal action button. A second and very important benefit in doing this will bolster the body corporate’s position that its recovery costs are reasonably incurred.

If we can help, give us a call, even just to clarify options. We don’t just move straight to debt recovery action – we’ll try to find a plan B with you first.

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