By the Paddocks Club team

Below are examples of two questions on the Paddocks Club discussion forum, to show you what is available to our Community members!

How can trustees collect rental income from a tenant if the owner has overdue levies?

Member’s question:

Good day Paddocks,

We have an owner who is in arrears with his levies. The unit has tenants in, so we just want to know what the procedure is to receive the rental so that we can allocate it for the levies that are due by the owner.

Thank you in advance.

Regards

Graham’s answer:

Dear member,

You have to make an application to CSOS for an order that the tenant is obliged to pay rental to the BC rather than to the levy-defaulting landlord.

Regards,
Graham

Member’s follow-up question:

Thank you, Graham,

The owner has been in arrears for quite some time and has been handed over to the legal department. Can we proceed with the CSOS application although the owner is handed over?

Graham’s answer:

Dear member,

If the collection procedure is in the court system and moving forward, I expect that the CSOS will refuse to deal with it.

Regards,
Graham

Is there any law regarding what can be charged for a levy clearance certificate?

Member’s question:

Good day Paddocks,

Is there any legislation regarding what a managing agent is permitted to charge for issuing levy clearance consents?

Also, do the trustees have to authorize the managing agent to do this or can the trustees do it themselves and thus save their members the fee?

Graham’s answer:

Dear member,

As far as I am aware there is no legislation that governs the cost of a levy clearance certificate. The person issuing and signing the certificate is representing the body corporate, so I guess they would have to agree with the trustees on what amount will be charged.

Yes, the trustees can issue the LCC themselves, as long as they have access to the information they need to confirm the seller’s financial status with the body corporate. And no, they do not need to charge for the certificate.

Regards,
Graham

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Article reference: Paddocks Press: Volume 16, Issue 6.

Graham Paddock is available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

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