Late Charges and Interest

Q: Is it acceptable for a condominium association to charge a co-owner both late charges and interest on unpaid assessments?

Yes. The Michigan Condominium Act, MCL 559.206 (c), authorizes an association to impose late charges on a delinquent co-owner’s account “as provided in the condominium bylaws or rules and regulations of the condominium.” Michigan courts have expressly recognized that the purpose of late charges is to defray the association’s administrative costs (e.g., bookkeeping services, etc.) incurred as a result of having to carry and address delinquent co-owner accounts.    Read the Q&A……………..

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