Associations are allowed to charge late fees and interest
as well as collection fees and costs related to delinquent assessments.
. 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
: Associations needing legal assistance can contact us
To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter