Withholding Levy payments

Property Management 2 Comments

Many Owners over the years have threatened to withhold
levies pending some outrageous outcome. An example we’ve faced far too often is
an Owner threatening to withhold levy payments until the developer attends to
their snags.

Beware of using this tactic as it can never work in your favour.
As an Owner in a Sectional Title Scheme, you have a legal obligation to pay the
levies determined at any time or from time to time at the various Body
Corporate Meetings.



The leniency of non-payers is usually dependant on the
Managing Agent and the policies of the building in question.



Although payment of levies may, in some cases, be the only
remaining bargaining chip one has to play, be careful that it does not cause
more trouble than its worth.

A Body Corporate cannot function at its optimum level
without the consistent payment of levies, nor is it fair on the owners that do
make regular payments to ‘piggyback’ the non-payers.

We recommend exhausting all alternative methods for dispute
resolution before thinking of withholding levies.



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