Q1. I am 2 months late with my Body Corporate levies. Can the Body Corporate charge me interest?
Yes the Body Corporate can charge you interest if the Body Corporate has decided by Ordinary Resolution to apply penalties to levies if they are not paid by the due date. The penalty can only be set at a rate of no more than 2.5% for each month the levy is in arrears (30% per annum) and is simple interest not compounding interest.
Q2. How does the Body Corporate apply a discount to lot owner’s levies?
The Body Corporate may decide by Ordinary Resolution to apply discounts to levies that are paid by the due date. A discount must be set at a rate of no more than 20% of the amount of the levy instalment and must be shown on the levy notice.
Q3. I agreed for the Body Corporate to arrange for gutter cleaning on my behalf. I pay separately from my normal Body Corporate levies but I forgot to pay the last instalment. They are now saying that I cannot vote at the Annual General Meeting and cannot be elected to the Body Corporate Committee. Is this correct?
Yes this is correct, a lot owner is unable to vote at a general meeting or be elected to the Body Corporate Committee if they owe a debt to the Body Corporate.
A Body Corporate debt is defined as;
- A contribution or instalment of a contribution.
- A penalty for not paying a contribution or instalment of a contribution by the due date.
- Another amount associated with the ownership of a lot. For example a hot water account or an invoice for parking under an exclusive use by-law or payment of an agreed service supplied by the Body Corporate such as cleaning the gutters.
Q4. The owner of Lot 4 is three years in arrears with his Body Corporate levies. Is the Body Corporate able to attempt to recover this debt?
Yes, the Body Corporate can attempt to recover an outstanding debt within 6 years from the contribution becoming outstanding.
Q5. Does the Body Corporate have the authority to waive your levies?
No, the Body Corporate does not have the authority to waive your levies.
The legislation provides that the Body Corporate ‘may allow a discount, or waive the penalty or recovery costs in whole or part’ if satisfied there are special reasons. This may be for situations such as illness or financial hardship.
Q6. The Body Corporate says I am behind $500 on my levies. I don’t agree. Can I lodge a dispute application with the BCCM?
Yes, an owner can apply for conciliation through BCCM to determine a dispute about a debt.
Q7. I am a new owner. The Body Corporate issued a special levy after my settlement date and I was unaware of this at the time of purchasing. Do I still have to pay the special levy?
Yes, you must pay the special levy. A Body Corporate debt runs with the lot.
This list of FAQs were taken from the BCCM website.
