Owners Corporation in debt? Every owner is on risk to pay. - More Than Strata

Owners Corporation in debt? Every owner is on risk to pay.

Did you know that a creditor with a default judgement against an Owners Corporation can apply for a compulsory agent to be appointed?

In plain English, if the strata owes money which it does not pay back, and that entity obtains a default judgement debt, it can apply to the New South Wales Civil and Administrative Tribunal (NCAT) for the appointment of a compulsory strata agent. This is basically, the appointment of an administrator. The agent will, and without requiring approval from owners, raise and collect special levies to repay that debt, and any other the owners may owe through the strata.

The strata many incur the liability, every owner has to pay for it.

We discussed this issue with renowned strata lawyer, David Edwards. You can listen here.