In this video, Elisha Quigg, Associate with OMB Solicitors, delivers us some top tips in ensuring smooth and efficient levy recovery.
Hello, my name is Elisha, Solicitor at OMB Solicitors. Today I’m going to be talking to you about our three top tips in ensuring a smooth and efficient levy recovery.
The first tip we have for you is keeping our records up to date by including all contact details for lot owners that are referred to levy recovery. It is imperative that when an owner is in default that we are able to quickly communicate with them to bring the debt to their knowledge and attention. Now that includes reviewing the format and see if there’s any other contact details on the file which will assist us with that recovery process.
Now, the second point I’d like to raise is in relation to arrears. Now, if an owner is in arrears of more than 90 days, then this needs to be red-flagged straight away because the older the debt, the more difficult it is to recover. So what we need to be doing at this very point is looking at our age status reports to see what owners are currently in the 90 days arrears and starting to think about whether or not they need to be referred to levy recovery.
Now, the third tip is engaging your legal advisors early to assist with a recovery action. Like I said, when the debt starts to escalate, it does become more difficult to recover and that’s especially the case in circumstances where interest will start applying on outstanding contributions come 1 May 2021. So it’s really important that with your buildings, you are completing your age debtor’s reports, you’re considering which owners are sort of starting to get to that 90 day arrest time frame and starting to discuss these matters with your legal advisers to see if you can quickly and efficiently recover those debts on behalf of the body’s corporate.
Now, also, a final tip is in relation to communication when it’s referred to legal recovery. it is important that when an owner is referred to legal recovery or levy recovery that you cease all communication with that owner directly. So whether or not you’re a committee member or a body corporate manager, it does make it particularly difficult if a matter has been referred to levy recovery and there’s communication coming from a number of different key stakeholders such as the lawyers, the committee members, the body corporate managers, it does make it far quicker and easier to resolve debt when there is only one point of contact in that process.
Now, as a final point in relation to our COVID relief legislation, as we know things are starting to slow down a little bit now and penalty interest will start up again on 1 May 2021.
So it’s really important that committees start thinking about their buildings and getting on top of those levy arrears to ensure that when that 1 May 2021 time frame comes around, there are not many owners that are in arrears that will suffer as a consequence of the penalty interest starting to accumulate again.
Now, if you have any questions at all or if you would like us to review any of your age debtors reports for your buildings to see whether or not matters need to be referred, please don’t hesitate to send them through to us and we will review them at absolutely no charge.
For your committee to ensure that we can get on top of those very quickly and efficiently and to ensure that you’re in safe hands, so feel free to give us a call and we’ll be happy to help. Thanks.