Default Interest and Legal Costs of a Defaulting Owner

When a condominium owner fails to pay contributions, he is liable not only for the unpaid amount. To the principal are added default interest, which accrues from the moment the share falls due, and the costs the condominium incurs to recover the claim, including legal ones. The principle is clear: the cost of default must fall on whoever causes it, not on the community of owners who pay regularly. Let us see how interest and costs apply and what precautions to take.

Why accessories follow the claim

The condominium contribution is a monetary obligation with a due date set by the resolution approving the allocation. On the due date, if the owner does not pay, he is in default and from that moment interest begins to run. Interest has a compensatory function: it compensates the condominium for the delay, since those sums were meant to cover common expenses and their absence often forces the condominium to advance funds.

Recovery costs follow the same logic. The work of the manager, the lawyer and any assistants needed to obtain payment is a cost generated by the defaulter's conduct. Charging it to the other owners would be unfair, so it tends to remain with the debtor.

Which interest applies

In the absence of a different provision, unpaid contributions accrue statutory interest at the rate periodically set by the Ministry of Economy. The condominium regulation, however, may provide default interest at a higher rate, provided it stays within legal limits and does not stray into unfair or usurious clauses. A resolution of the owners' meeting may also govern the rate applicable to defaulters, in compliance with the regulation and the law.

It is essential that the criterion be transparent and known in advance. A rate set by the regulation or resolved by the meeting, communicated to the owners, is easier to defend in court than a charge applied without any basis. Clarity on this point reduces disputes and makes any payment order more robust.

Legal costs in the payment order

When the claim is enforced through a payment order, the judge liquidates the costs of the procedure and places them on the debtor. The title includes the lawyer's fee under the professional parameters, the court fee and other out-of-pocket expenses. If the defaulter pays only after the injunction, he must also pay these amounts.

Beware of a practical aspect, however: until the costs are actually recovered from the debtor, the condominium may have to advance them to the lawyer. Correct accounting allocation prevents these amounts from being confused with the ordinary expenses shared among everyone.

The risk of allocating to paying owners

The most delicate issue is avoiding that the burdens of default end up, in fact, on the diligent owners. If the condominium advances legal costs and interest and then allocates them indiscriminately in the final account, those who pay on time bear a cost generated by others. The accounting must therefore keep these amounts separate and charge them to the debtor.

• Record default interest and recovery costs as items charged to the individual defaulter
• Do not dilute the claim accessories in the general allocation of expenses
• Document every reminder, disbursement and communication to justify the charge
• Update the owner's position as interest and costs accrue
• Return to the condominium the sums recovered for advanced costs

The role of the regulation and the meeting

A well-drafted regulation is the first line of defence. Expressly providing for interest to run from the instalment's due date, its rate and the charging of recovery costs to the defaulter gives the manager a solid basis to act. Where the regulation is silent, the meeting can supplement the rules with a resolution, which binds all owners within permitted limits.

The need for proportion remains. Excessive interest or disproportionate penalties risk being reduced by the judge and weakening the condominium's position. A balanced criterion that is actually applied is better than a punitive provision that is hard to sustain.

How to keep everything in order

Managing accessories requires accounting precision and continuity over time. Every missed deadline must automatically translate into the calculation of interest and the opening of a dedicated position, so as to present the debtor, or the judge, with a clear and verifiable account.

AmministraPro helps distinguish principal from accessories, calculates interest on overdue instalments and tracks recovery costs attributed to the individual defaulter, preventing them from weighing on owners who pay on time. The arrears management features are shown on the /funzioni page and the plans can be reviewed on /prezzi.