Legal Question in Real Estate Law in New York

Re: Common Charges

If the Condo rules which you accepted when you became a member provide for this (and most do), they can impose the charge.

Re: Common Charges

Late fees are common on tardy payments for common charges. Typically, they must be authorized by the Declaration that is filed with the association. The Declaration is to the condo like the Constitution is to the United States, i.e., it is the most fundamental rules governing the condo association, which supercede all others (such as Board resolutions, rules & regulations, etc.) except for federal, state or municipal laws.

Typically, the Declaration will authorize the collection of late fees. However, in many instances, the amount of the late fee is fixed by the Declaration. Declarations typically can only be amended by a vote of the owners, usually at a high percentage of approval (let's say, 75% of all owners voting in the affirmative for an amendment). If the condo board desires to raise the amount of the late fee, it may have to seek an amendment to the Declaration, a difficult process. I have seen an occasion where, rather than amend the Declaration, the Board simply passed a resolution increasing the amount of late fees. On behalf of my client, we sued and won a judgment that the increase in fees was in violation of the Declaration. The Board ultimately had to refund to all owners who had paid late fees the excess amount collected over that authorized by the Declaration.

Therefore: Check the Declaration & make sure that the amount you are being charged is in conformity with the Declaration.