The Victorian sheriff has seized and sold almost $5m worth of property including a home belonging to a former US diplomat accused of keeping sex slaves for her Aussie husband
But legal groups are growing worried the system could be used to force homeowners to sell up if they fall behind on their owners corporation fees.
This Docklands apartment was formerly owned by a Linda Howard, who was ordered to sell it, in order to pay compensation to a maid whom she was found liable of sexually enslaving and trafficking. A September 2022 report from the International Labour Organisation, Walk Free and the International Organisation for Migration estimated 4.9 million women and girls were working in forced commercial sexual slavery around the world in 2021. Photo: Supplied.
The sheriff can sell the debtor’s interest in real estate without a reserve but in this case, the highest bid at auction would usually be subject to court approval. “In the absence of more supportive hardship practices in the industry, some owners corporations are resorting to legal action to recoup funds including forced bankruptcy through the Federal Court,” the letter read.The Consumer Action Law Centre and Financial Counselling Victoria have expressed concern about owners corporations resorting to legal action to recover unpaid strata and body corp fees.
In the document, Consumer Action Law Centre chief executive Gerard Brody and Financial Counselling Victoria’s executive officer Sandy Ross asked the department to revisit a 2021 proposal to allow lot owners in financial hardship to pay outstanding fees in instalments under a payment plan. If the debtor wishes to prevent the sheriff selling their property, they can make arrangements to pay their court-ordered debt before an auction or apply to court for a stay or injunction.
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