According to the report by the BRCondo management company , the default rate in Brazilian condominiums is almost 12% . This scenario directly impacts cash flow and the maintenance of essential services.
To avoid greater financial losses, the application of interest and fines becomes essential. Given this increase, it is essential to understand how to correctly calculate interest on late condominium fees.
Below, check out the step-by-step guide to performing this calculation , considering all the charges provided for in the legislation.
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What does the Law on Default in Condominiums say?
The Condominium Default Law is oman whatsapp number data by the Brazilian Civil Code, in Law No. 10,406/2002 , more specifically in articles 1,336 and 1,337. They deal with the responsibilities of condominium owners and penalties in case of default.
Understanding them is essential to ensure the financial health of the condominium and apply the correct measures , avoiding cash flow losses.
Check out the main points determined by the Law below
- The condominium owner is obliged to pay the condominium fee , in accordance with article 1,336 , item I, of the Civil Code;
- The law provides that condominium owners who fail to pay their obligations on time may be penalized with a fine of up to 2% of the amount due. In addition, there is interest on arrears, generally 1% per month, as stipulated in the condominium agreement;
- The condominium agreement may provide for other penalties, such as the collection of monetary correction on overdue amounts;
- Article 1,337 provides that, in cases of serious or persistent default, the condominium owner may lose the right to vote in condominium meetings until the debts are paid off;
- If the defaulter does not settle his/her debts, the condominium may file a legal collection action , which may result in the seizure of assets and, ultimately, even the auction of the property to settle the debts.
It is worth noting that, currently, condominium expenses have into extrajudicial executive titles , according to art. 784 , X, of the NCPC.
This way, the condominium can collect legally more quickly, without having to wait for a decision from the judge.
What are the charges for late condominium fees?
According to the law, when a net worth 50 cents owner fails to pay their monthly fee, the condominium may apply a series of financial charges. These are to compensate for the delay and ensure that the default does not affect the building’s accounts.
Understanding how these charges work in order to collect payments is essential for condominium owners and administrators. This is because the accumulation of debts can lead to a significantly higher amount than the original.
These charges include monetary correction, fines, interest on arrears and, in more extreme cases, legal fees , both extrajudicial and judicial. Check out each of them below:
1. Monetary correction
Monetary correction is an adjustment cn numbers to the value of the debt to ensure that the condominium does not suffer financial losses due to inflation.
This calculation is on official adjustment indexes , such as the IPCA (Broad Consumer Price Index) or the IGP-M (General Market Price Index).
The purpose of monetary correction is to preserve the real value of the amount owed , preventing the debt from losing value over time. The index to set out in the condominium agreement.