THE owners of a luxurious holiday home in Casuarina are threatening to take Tweed Shire Council to court unless it revokes an order to prevent them renting their property as a Short Term Holiday Letting (STHL).

Sally and Chris Johannsen were ordered by council last month to cease letting their home on STHL sites by June 5, or face a fine of up to $1 million, plus $10,000 per day any STHL operation continued.

They are also calling on council to re-examine the way it addresses complaints and are recalling for a full public apology to be published in local media.

The current council policy states any property in a Low Density Residential R2 zone is prohibited from operating a STHL.

But the Johannsen family, who currently live in London, England, have received legal advice stating council has no authority to issue the fines in breach of TSC LEP 2014 because their property, La Maison Pacifique at 6 Beason Court, started operating as an STHL in 2011, when it was legally permitted.

In a letter addressed to Council's general manager Troy Green, Mr and Mrs Johannsen stated they believe they are legally entitled to operate as an STHL and will take legal action against council should the infringement notices continue.

Council has until Sunday, June 17, to respond to Sally and Chris' letter before they seek legal action. Council resolved last month to engage its solicitors to assist officers in managing appropriate enforcement actions of STHL properties facing complaints, as it awaits for the NSW Government to release its own STHL policy later this year.

There's approximately 2000 short-term holiday lettings in the Tweed Shire listed on websites such as AirBnB and Stayz.