In a condominium, each owner is required to contribute to the costs of maintenance, conservation and renovation of the common areas. These expenses concern goods and services that each condominium owner can benefit from, such as the use of the stairs, the elevator, the roof or the courtyard.
In case of non-payment of these expenses, the debtor may be subject to debt collection action by the condominium administrator, who, if the non-compliance persists beyond six months, may even suspend access to separable common services, such as central heating.
But in the event of late payments, in addition to condominium charges, is it legitimate to apply default interest?
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What is meant by condominium expenses?
Condominium expenses include all the costs necessary for the management, maintenance and conservation of the common parts of a building. These parts include, for example, the stairs, the elevator, the roof, the courtyard and other areas shared between all owners. Each condominium owner is required to contribute to these expenses in proportion to the thousandths of property, which represents the value of his real estate unit compared to the entire condominium.
Condominium expenses are divided into two main categories:
- Ordinary expenses: concern recurring expenses for daily management, such as cleaning common areas, lighting or maintenance of systems.
- Extraordinary expenses: include more significant and occasional interventions, such as the renovation of the roof or the repair of complex systems.
The condominium regulation establishes the methods for dividing these expenses, and failure to pay can lead to legal action by the administrator or the suspension of some services, such as central heating.
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Default interest: what is it?
Default interest is a form of compensation applied to debtors who delay in paying an amount due. This is not an initial agreement between the parties, but a legal consequence that is triggered automatically from the moment the payment is not made within the established deadline.
This interest, which has a compensatory function for the delay suffered by the creditor, is calculated starting from the day following the payment deadline.
Unlike legal interest, which is linked to the natural profitability of money, default interest is a penalty for failure to comply with contractual terms.
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Is it legitimate to apply default interest on condominium expenses?
The question relating to the possibility for the administrator to request default interest for non-payment of condominium expenses has been clarified by jurisprudence. In particular, according to a ruling of the Supreme Court (n. 10196/2013), late payment interest can only be applied if unanimously approved by the condominium assembly or if provided for in the contractual regulation of the condominium.
A majority decision is therefore not sufficient to introduce the penalty on late payments, nor does the administrator have the power to establish it independently.
As with default interest, the application of a penalty for late payments of condominium expenses is also regulated by law. The Court of Cassation, with sentence no. 10929/2011, established that any penalties or fines can only be applied if provided for by the condominium regulations and approved unanimously.
In other words, any resolution that imposes penalties or late payment interest without unanimous approval is void and may be challenged at any time by anyone with an interest.
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What happens if there is no unanimity?
If the condominium assembly does not reach unanimity for the approval of default interest or penalties, these cannot be applied to defaulting condominium owners. Any decision taken by majority in this regard is considered null and void and can be challenged by any condominium owner, even after some time.
This rule serves to protect the rights of owners, preventing decisions imposed by the majority from disproportionately burdening individuals. However, the obligation to pay condominium expenses still remains.
The administrator can take legal action to recover the debt, but cannot add late payment interest or penalties without the unanimous agreement of the assembly or without the presence of a specific clause in the condominium regulation.