Late Payment

Purpose

This policy aims to outline the procedures for addressing late payment of monthly fees by unit owners to ensure the financial stability of the condominium corporation and the fair treatment of all owners.

Definitions

  • Monthly Fees: Regular assessments levied on unit owners to cover the costs of operating and maintaining the common elements and assets of the condominium.

  • Due Date: The date on which monthly fees are due and payable as specified in the condominium's bylaws.

  • Late Payment: Any payment of monthly fees received after the due date.

  • Late Fee: A penalty charged for late payment of monthly fees, as outlined in the bylaws.

  • Interest: Additional charges levied on outstanding balances of late payments, as outlined in the bylaws.

Policy

  1. Due Date: Monthly fees are due on the first day of each month.

  2. Late Payments: Payments received after the due date will be considered late and subject to late fees and interest charges.

  3. Late Fee: A late fee of [percentage or dollar amount] will be applied to any outstanding balance on the [number] day of the month following the due date.

  4. Interest: Interest will accrue on any outstanding balance, including late fees, at a rate of [percentage] per annum, calculated daily and compounded monthly.

  5. Notification: A written notice of late payment, including the amount due, late fee, and interest charges, will be sent to the unit owner within [number] days of the missed due date.

  6. Payment Plan: Unit owners facing financial difficulties may request a payment plan to settle outstanding balances. Such requests will be reviewed on a case-by-case basis and may be subject to approval by the Board of Directors.

  7. Collection Actions: If a unit owner fails to make payments as agreed upon in a payment plan or consistently fails to pay monthly fees, the condominium corporation may initiate collection actions, including but not limited to:

    • Filing a lien against the unit

    • Initiating legal proceedings to recover the outstanding amount

    • Suspension of privileges or services

  8. Communication: The condominium corporation will maintain open communication with unit owners regarding their financial obligations and provide reasonable opportunities for them to rectify late payments before initiating collection actions.

Enforcement

This policy will be enforced by the condominium corporation's Board of Directors or its designated property management company.

Review

This policy will be reviewed annually and updated as necessary to ensure its effectiveness and compliance with applicable laws and regulations.

###Disclaimer

This policy is intended as a general guideline and should not be considered legal advice. Consult with a qualified professional for specific legal questions or concerns.