We get paid when you get paid!
In our experience bodies corporate often find themselves in a peculiar and frustrating position whereby they wish to take action and recovery body corporate debts, however they do not have the funds to pay lawyers to chase the debts for them. Accordingly, small debts escalate to big debts and the body corporate finds itself hamstrung by the cost of debt recovery. Cannon & Co Law is aware of this issue and has implemented a policy whereby ‘we get paid when you get paid’. Namely, any and all of our professional costs associated with debt recovery will not be invoiced until such time as we recover the outstanding debt for you.
To further ease a Committee’s decision to take recovery action against offending owners we wish to drawn attention to the following section of the Body Corporate and Community Management (Standard Module) Act Qld 2008:
145 Payment and recovery of body corporate debts
- If a contribution or contributions instalment is not paid by the date of payment, the body corporate may recover each of the following amounts as a debt –
- The amount of the contribution or instalment;
- Any penalty for not paying the contribution or instalment;
- Any costs (recovery costs) reasonably incurred by the body corporate in recovering the amount.
- If the amount of a contribution instalment has been outstanding for 2 years, the body corporate must, within 2 months of the end of the 2 year period, start proceedings to recover the amount.
We draw your attention to this section of the Module as it provides two crucial points that should remain at the forefront of Committee’s minds:
- That the body corporate can recover from the offending owner recovery costs reasonably incurred by the body corporate in recovering the debt. Therefore, our fees associated with the recovery will be a cost borne by the offending owner and paid as a part of the settlement of debt outstanding. Accordingly, and more often than not the body corporate will not be required to expend any professional fees associated with the recovery. This will act to ease the financial pressures placed on committees and ultimately result in a solvent and properly administrated body corporate.
- Secondly, subsection (2) places a positive and mandatory obligation on a body corporate to pursue debts which have been outstanding for longer than 2 years. Accordingly, it is a committee’s obligation to be cognisant of the debts outstanding and be ready to take action to recover such debts.
Cannon & Co Law’s flexibility and position of fees will in turn ease financial pressures on bodies corporate, especially smaller schemes and allow schemes to comfortably pursue and recover debts without worrying about funding legal fees.
Unlike other firms we also do not add an uplift on our fees to compensate for the delayed payment. Cannon & Co Law offers fixed fees for each and every step of recovery. Our fixed fees are extremely competitive and transparent from the beginning. To illustrate, you will find our schedule of fees for debt recovery on our website and we can assure you that there are no hidden costs.
Accordingly, not only will the body corporate’s fees be paid upon recovery of the debt outstanding but the fees will be fixed to provide the body corporate with security and comfort in the costs of recovery.
We pride ourselves of being highly specialised body corporate lawyers, who can provide bodies corporate with flexible fee arrangements. Considering this we are confident in offering the above flexible fee arrangement to bodies corporate. Please contact us to discuss further and organise a meeting with our team at a mutually convenient time.
In the meantime, please feel free to contact our office at any time to discuss issues within your Schemes or pass our number onto your committee members.
Thank you in advance and we hope to hear from you soon.