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What Happens if I Don’t Pay My Levies?

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The body corporate is legally obligated to recover all levies from lot owners, as these funds are essential for covering the operational costs of the property. If you fail to pay your levy invoice by the due date, the body corporate will take steps to recover the overdue amount.

1. Reminder notices

Initially, the body corporate will issue reminder invoices/statements and penalty notices to notify you of the overdue contribution. These reminders often include additional fees, such as overdue interest or penalties such as arrears fees, which will be added to your debt.

2. Debt recovery costs

Any costs incurred by the body corporate to recover overdue levies—such as administrative charges or legal fees—will also be charged to your account, increasing the total amount you owe. See our article on how to avoid late fees on your levies.

3. Legal action

If the body corporate cannot recover the debt directly through reminders or negotiations, they are required to escalate the matter. This involves engaging a solicitor to initiate debt recovery proceedings – including court action if necessary.

4. No exceptions or forgiveness

The body corporate cannot waive, write off, or forgive unpaid levies. Levies are essential to maintaining the property and funding shared expenses such as insurance, maintenance, and utilities. If the committee were to excuse one owner from paying, it would unfairly increase the financial burden on all other lot owners.

Why timely payment matters

Paying your levies on time helps ensure the body corporate can meet its financial obligations and maintain the quality and functionality of the property for all residents. Avoiding overdue levies protects you from additional charges, legal action, and potential complications with the management of your lot.

If you are experiencing financial difficulties, it’s best to contact the body corporate as soon as possible to discuss your options. See our article on what to do if you can’t pay your levies.

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