Although an instalment plan can sometimes be agreed by an owners corporation in appropriate cases. However under the new strata Regulation a lot owner will have the right to request the owners corporation hold an extraordinary general meeting (EGM) to discuss agreeing to a payment plan for any levies in arrears.
As a result of the request the lot owner may have to pay the costs of holding the EGM, although sometimes an owners corporation can approve a plan at an AGM.
Faiyaaz said: “It’s important to note that by holding an EGM it is not guaranteed that the request for the payment plan will be approved.
“The entry into a payment plan is a discretionary matter for the owners corporation and it is not a mandatory requirement that such a plan will have to be accepted.
“Conversely, an owners corporation in a deserving and genuine case may decide to accept a request for a payment plan provided the owners corporation is of the view that the plan is more likely to be adhered to.”
He added that if a request for a payment plan is unreasonably refused the lot owner can take legal action against a refusal and seek orders from a Court of Law or Tribunal forcing the owners corporation to enter into a payment plan.
To find out more information about the new levy collection laws, click here.