Definition : Interest

Amount of money paid periodically by the debtor to his creditor as remuneration for a loan or an unpaid sum of money. This sum is calculated on the basis of an interest rate expressed as a percentage and fixed by agreement between the parties. The interest rate must be indicated on an annual basis. The declaration of co-ownership (by-laws of the immovable) generally provides for an interest rate applicable to unpaid common expenses. If the latter is silent on this subject, the applicable interest rate will be the legal rate (article 4 of the Interest Act).

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The syndicate of co-owners must, to meet the expenses arising from the co-ownership and the operation of the immovable, collect from its members the necessary sums. It is therefore essential that the co-owners meet their financial obligations on an ad hoc basis. However, the failure to pay general or special  common expenses (condo fees) is one of the most contentious co-ownership’s issues. The role of the board of directors in this matter is paramount, it is up to it to collect the debts of the syndicate. Unless this task is delegated to the condo manager. The syndicate must therefore take the necessary steps to collect the unpaid sums.  A review of the options in such cases.
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