Interest Charges For Late Payment Of Condo Expenses

[jm49er1]

i was recently elected to the condo committee and am trying to find out the maximum that can be charged to owners who are late in paying their expenses - condo association dues, electricity, water, laundry etc . The condo act of 2008 section 18 specifies 12% for expenses less than 6 months old and 20% for those older than 6 months:

Section 18/1 In the case where a joint owner fails to make payments set forth under Section 18 with the prescribed time, such joint owner shall pay surcharge at the rate not exceeding twelve percents (12%) per year of the amount unpaid without compound interest charging provided, however, that this shall be in accordance with the requirements set forth under the Bylaws.

A joint owner with an amount in arrears under Section 18 from six months and upwards shall pay surcharge at the rate not exceeding twenty percents (20%) per year and may be suspended from receiving common services or using common property as set forth under the By-laws including the non-existence of the right to vote in the General Meeting.

Our condo manager tells me that this was recently changed to 15% for all late expenses but i cannot find any confirmation of that in the internet. Does anyone have any updated information on this? also would be curious what your condo association is charging for late expenses

[Delight]

When you say condo manager I assume you mean the building manager not the JPM.

The good JPM would never make such a statement.

The condo is allowed to treat these values as Max. fines. If your rules specify a lower value -so be it.

An amendment to the condo act is required to modify current values.

The condo where I live charges 1% per month for the first 6 after that 1.66% per month. -no compounding

If that fails then its time to see the judge

Edited May 20, 2012 by Delight