Is a Receiver liable for Body Corporate levies?

June 3, 2014

in Property

Property: Unit Titles Act 2010Many units in Body Corporate complexes are owned by investors through company entities.

When a company gets into financial difficulties one of the options for secured creditors is to appoint a receiver.

Obligations of receivers are generally governed by the Receiverships Act 1993.

Recently the High Court was asked to determine whether a receiver of a company that owned several units in a Body Corporate complex was liable for payment of Body Corporate levies since the receiver had been appointed and taken over control of the units.

Obviously from the Body Corporate’s point of view it would be extremely advantageous for the receiver to be liable and therefore have to pay significant outstanding levies.  The receiver disputed that they were liable for such levies under the receivership legislation.

The High Court has agreed with the receivers and stated that levies are not payments due under any agreement entered into by the receiver after receivership commenced and therefore the receiver was not personally liable for payment of levies.

This is important for Body Corporates to recognise and it is again a salient reminder that management of arrears of levies by the Body Corporate is critical to avoid large amounts of arrears building up and/or difficulties with recovery.

We advise a number of Body Corporates in all aspects of Unit Title management and administration and can assist in regard to any issues concerning levies and/or failure to pay by owners.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co. who normally advises you, or alternatively contact:

Paul Farry

09 379 0055 or 03 477 8870



The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain. 

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