Condominium Delinquency

We are thrilled to launch this column on Condominium Law for Condomínios e Vizinhança Magazine. Each month, we'll tackle current and relevant legal topics for condominium living. Your input is crucial! Send your suggestions, critiques, and compliments to condominio@pw.adv.br, and we'll be happy to respond. In this issue, we'll discuss one of the biggest challenges faced by condominium managers and administrators: delinquency. ...

Condominium Delinquency

It is with immense pleasure that I launch this column on Condominium Law for Condomínios e Vizinhança Magazine. Every month, we will address current and relevant legal issues for condominium living. Your participation is of utmost importance. Send your suggestions, critiques, and compliments to the email condominio@pw.adv.br, and we will be happy to respond.

In this edition, we will discuss one of the biggest problems faced by condominium managers and administrators: delinquency.

There is no doubt that condominium delinquency leads to lower-than-expected revenue, causing various other problems such as: the functioning of basic services, increased expenses for other residents, and, in more extreme cases, even affecting the relationship between residents and with the condominium administration.

Article 1.348, VII of the Civil Code states that "It is the duty of the manager: to collect contributions from the residents, as well as to impose and collect the due fines". But how to carry out this collection efficiently?

Generally, condominium managers delegate these extrajudicial collections to the administrator or accounting firm, but they do not supervise, letting time pass and the debt increase.

Studies have already shown that the sooner a debt is collected, the greater the chances of receiving it. But it's not enough to just collect; you have to know how to collect.

Therefore, the suggestion is that the condominium manager does not handle the debt collection on their own, to avoid exposing themselves to the residents. They should hire a specialized collection agency.

Many believe that collection can only be carried out 30 days after the debt is due and that a lawsuit can only be filed 90 days after the due date, which is not true.

It is of utmost importance that the condominium manager, in conjunction with the administrator and the collection agency, establish a collection policy, determining grace periods and the actions to be taken at each stage of the collection process.

Another important point to highlight is that the condominium manager cannot fail to collect fines and interest, much less grant discounts on condominium fees.

Under no circumstances can the debtor be harassed during the collection process, whether judicial or extrajudicial. Their name cannot be disclosed on open delinquency lists posted on the condominium's bulletin boards. The supply of gas and water also cannot be interrupted, nor can the use of common areas of the building, such as party rooms, swimming pools, and sports courts, be prohibited.

Seeking dialogue is always the best option, but if conversation is ineffective, the condominium must file a lawsuit, as the property unit itself will guarantee the execution.

Marcio Panno Waknin is a lawyer, specialist in Condominium Law, and partner at the law firm Panno Waknin Sociedade de Advocacia.