Associations are allowed to charge late fees and interest as well as collection fees and costs related to delinquent assessments.
Management Fees. Although Civil Code §5600(b) prohibits associations from charging a fee in excess of their costs, this restriction applies to associations, not their managing agents. Management companies are allowed to profit from the collection of delinquent assessments. As a result, management companies may charge more than their actual costs when it comes to generating pre-lien letters, lien letters, etc. (Brown v. PCM) A similar ruling was made about escrow fees.
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