Condo Q&A

Can associations charge interest to late paying owners?

Written by stephen polinsky | Mon, Jun 11, 2012 @ 12:33 PM
Maryland condo with delinquent owners. Our by-laws state that late fees can be assessed, however, no interest rate is specified. Consequently, we have used the default rate for the state, which is 6 percent. Is this the correct way to handle these situations or should we be doing something to establish a higher penalty to give owners more incentive to pay?