Debt recovery and impacting legal costs
Guidelines relating to recovery of outstanding debts are detailed in the Property Factors Act 2011, Code of Conduct, with reference to a principle sum debt and dealing with court action or irrecoverable debt.
‘Non-payment by some homeowners can sometimes affect provision of services to the others, or can result in the other homeowners being liable to meet the non-paying homeowner's debts (if they are jointly liable for the debts of others in the group). For this reason it is important that homeowners are aware of the implications of late payment and property factors have clear procedures to deal with this situation and take action as early as possible to prevent non-payment from developing into a problem’. Property Factors Act 2011, Code of Conduct
Information relating to ‘legal costs for recovery’ is detailed in the Deed of Conditions for each development. Drawn up by the developer’s Solicitor, the Deed of Conditions confirms that all expenses incurred by the Property Manager, are apportioned to the development.
The Property Factors Act 2011 gives clear direction on debt recovery to Property Management firms to ensure they do in fact attempt to recover outstanding debt and don’t simply apply charges to homeowners for outstanding sums, having done nothing to pursue the original debtor.
At Life Property Management, we quickly and efficiently pursue debtors to avoid outstanding debt becoming a larger problem and the legal expenses we apply, are proof of this proactive approach.
Insufficient funds can lead to services being reduced or ultimately ceased, which can adversely impact the development and property valuations.
To ensure clients have a full understanding of debt recovery procedures and impacting legal costs, lpm provide many different points of reference. Read more about the lpm Debt Recovery Procedure, check our Residents FAQs, or view Life Video – Legal Costs for further information.
You can also read what our clients are saying at client reviews.
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