Question:
What is the typical late fee to add to an overdue annual assessment?
– Tracy
Answer:
Hi Tracy,
For condos created before January 1, 1991, you may refer to the Alabama Condominium Ownership Act Section 35-8-13 which states that: “The interest rate, not to exceed the legal interest rate, may be established by the association or, if no rate is so established, it shall be the legal rate.”
For condos created after January 1, 1991, you may refer to the Alabama Uniform Condominium Act of 1991 Section 35-8A-315(b) which states that: “Any past due common expense assessment or installment thereof bears interest at the rate established by the association not exceeding 18 percent per year.”
Typically, the governing documents also dictate how much an HOA should charge in late fees.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
