Masschusetts Law: Condo Late Fees

A condominium owner in Massachusetts is liable for late fees, penalties and interest on money owed to the homeowner's association, which is the managing board of the condominium. The members of the board are responsible for collecting money from unit owners and enforcing the bylaws of the community.

Features

Expense fees, also referred to as dues, must be calculated based on the unit owner's percentage of interest in the common elements under Massachusetts law. The common elements are areas, items and services all members of the condominium use or have access to, such as a recreational facility in the community and common utilities. Expenses must be reviewed at least once a year to ensure the unit owners are not being under or overcharged. Any late fees assessed must be based on the unit member's individual share of the expenses and not the bill or cost as a whole. The due date for association fees and the applicable late penalties must be included in the condominium's bylaws.

Types

The association is permitted to charge late fees for overdue expenses and any other legal charges imposed by the association in accordance with the condominium's bylaws. A unit owner who is penalized for breaking association rules can be assessed a late fee for failing to pay the penalty amount by the deadline given by the association. The unit owner must be given the penalty amount and reason in writing.

Considerations

Massachusetts law allows an association to charge a delinquent unit owner numerous expenses for the collection of a late payment, including attorney, court and collection agency fees. A unit owner who is renting the unit to another person can lose the rent to the association if his dues are more than 25 days late. The association has the right to collect the rent from the tenant and apply the money to the debt and any late penalties until the charges are paid in full. A written notice must be sent to the unit owner before the rent is taken, and the owner has the right to challenge the collection.

Notification

The association must send a unit owner a notice by certified mail if his association fee payment is more than 60 days late The notice must state the total amount due and the calculation method used for any late fees. A mortgage lender who has a loan covering the unit is notified by the association of the overdue payment and any fees if the association has the lender's identity on file.