What happens if the body corporate runs out of money?

If a body corporate's administrative fund is insufficient to meet its obligations, the committee must act quickly: 1. **Call a general meeting** to raise an interim levy or special levy to restore the fund balance 2. **Prioritise essential expenditure** — insurance and critical maintenance must be maintained 3. **Report to owners** transparently about the financial position The body corporate cannot simply stop paying its obligations — unpaid insurance premiums, maintenance contracts, or management fees create further liabilities. Running out of funds is almost always the result of: - Levies being set too low for too long - Unexpected large expenditure not in the budget - Poor levy collection (significant arrears not being recovered) Owners who pressure the committee to keep levies artificially low often end up facing large special levies when the funds run out. This article is general information only and not legal advice.