What is the rate of interest charged on unpaid levies?
What is the rate of interest charged on unpaid levies?
10%
In NSW, if a contribution is not paid within one month, the unpaid levy attracts interest at a rate of 10% simple interest a year. The Body Corporate cannot increase or decrease the interest, but it can make a special resolution to charge no interest.
What is included in sectional title levies?
Levies in sectional title complexes are typically used for things like security, reparations, maintenance like repainting the building, the servicing of pools, clubhouses, parks, gardens, play areas and other communal areas.
What is arrear interest?
1. Interest on a loan that has not been paid, especially after payment has become late. 2. Interest on a loan that is not paid over the life of the loan, but rather in full upon maturity.
Can a body corporate add 30% interest on overdue strata?
Body Corporate and Community Management Act 1997 permits Queensland bodies corporate to charge 2.5% interest per month, in other words 30% per annum, on overdue strata levies due by an owner to the bodies corporate.
Why does body corporate charge 30% interest?
The 30% interest is intended to not only penalise an owner, but to compensate the body corporate for the costs associated with a default by an owner to service his/her/its obligations. Purchasers into body corporate properties must consider that the body corporate is not the purchaser’s future personal lender.
Can a body charge interest on overdue debt?
Over and above the interest, the body corporate had added charges for legal monitoring and collection of the outstanding debt. While the Sectional Title Schemes Management Act does allow for interest to be charged on overdue amounts and for legal costs to be covered by the defaulting owner (PMR 25 (4)), it stipulates in the Management Rules that,
What do I need to know about owners corporation fees?
The first fee notice must state that: if the owners corporation has voted to charge interest on overdue fees, penalty interest at the rate specified in the notice will be payable on overdue fees and charges. For more information, view the penalty interest rate information on this page