Management Rule 31 (5) provides that the owner shall be liable for and pay all legal costs incurred by the Body Corporate in obtaining the recovery of arrear levies, or any other arrear amounts or enforcing compliance with the Conduct Rules.

When a Body Corporate is taking legal action against an owner, the legal fees are immediately debited to the owner’s account and interest is often also debited on the legal fees.  An Arbitrator may however order that the legal fees must be removed from the account and charged separately (if so awarded) and the interest must be recalculated.