Overdue condominium fees: collection, penalties and the owner’s rights

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Few debts are as misunderstood as condominium fees. On one side, owners shocked to learn the property can be seized even as the family’s only home. On the other, building managers charging penalties above the legal cap or barring debtors from the lift — two practices courts routinely strike down.

This article sets out both sides: what the condominium may do to collect, and which rights the owner keeps while in arrears.

Why condominium debt “sticks” to the property

The condominium fee is an obligation propter rem — plainly, it follows the thing. It does not matter who owned the unit when the debt arose; it is tied to the unit. So whoever buys a flat with overdue fees assumes the debt, even without having caused it.

Hence a practical tip worth its weight in gold when buying: request the condominium clearance statement, signed by the manager or administrator, before closing. It is a simple document that avoids a loss which can reach tens of thousands of reais.

How much the condominium may charge in penalty and interest

Article 1,336, §1 of the Civil Code is clear: the late-payment penalty is at most 2% of the debt. Older by-laws providing for 10% or 20% do not prevail on this point — the statutory cap applies.

Beyond the penalty, default interest applies (as agreed in the by-laws; absent a rate, under art. 406 following Law 14,905/2024, with the rules for each period checked) plus indexation. The correct reading is this: collection may be firm, but it is capped. When the statement exceeds that limit, the amount charged is questionable — and review can identify excess charges without guaranteeing a reduction.

Penalties for antisocial behaviour: a different matter

Do not confuse the late-payment penalty (2%) with penalties for breach of duties — noise, misuse of common areas, irregular works. Those follow a different rule: up to five times the fee (art. 1,336, §2) and, for a repeatedly antisocial owner, up to ten times (art. 1,337). Under art. 1,336(2), absent an express provision, collection requires approval by two thirds of the other owners. Art. 1,337 requires three quarters of the remaining owners for a penalty of up to five fees for repeated breach, and provides for up to ten fees for repeated antisocial conduct incompatible with shared living. The requirements of each ground and the right of defence must be respected.

The property can be seized — even as a family home

This is what surprises people most. Law 8.009/1990 protects the family home from seizure, but it contains exceptions. Article 3, IV allows seizure for taxes, rates and contributions owed in respect of the property — which includes condominium fees.

The rationale is understandable: if condominium debt could not be enforced against the unit, the other residents would indefinitely fund whoever does not pay. In plain terms: condominium debt is one of the few that reaches the family home — which is why it should not be left to accumulate.

What the condominium may NOT do

• Cut off water, power or gas to the unit as pressure — prevailing case law treats this as abusive, as it affects dignity and health.
• Restrict common areas, including leisure facilities, to force payment; this includes essential areas (lift, garage, lobby, access to the unit). The STJ holds firmly that restricting use is not a legitimate collection method.
• Abusively expose the debtor on notice boards, lifts or chat groups, as distinct from necessary accounting information for owners — this may amount to moral damages.
• Charge a late penalty above 2%, even if older by-laws say otherwise.
• Extend restrictions beyond the law. Art. 1,335(III) makes participation and voting conditional on payment; it neither guarantees unrestricted participation while in arrears nor authorises humiliation.

How judicial collection works

Ordinary or extraordinary contributions provided for in the by-laws or approved at a meeting and supported by documents may form an out-of-court enforceable instrument (Civil Procedure Code art. 784(X)), provided the debt is certain, ascertainable and due. In practice, the condominium does not need a lengthy declaratory action to establish the debt: it may proceed straight to enforcement, with seizure of assets — including the unit itself.

Where the requirements are met, prior judgment is unnecessary, but speed is not guaranteed. For the owner, it is a warning: a defence requires concrete grounds (calculation error, charges above the cap, fees already paid, defective notice of the meeting that approved the expense), not merely financial hardship.

A hypothetical example: reviewing a debt

Suppose an owner receives a demand for R$ 38,000 in overdue fees, with a 10% penalty under an old by-law and compound interest. Review checks the applicable 2% cap, each period's rules and the legal basis for interest and compounding. If excess charges are found, recalculation and negotiation may follow. This is a hypothetical illustration, not a real outcome or a promise of a reduction or settlement.

Checklist for the owner

• Request the detailed statement of the debt (periods, penalty, interest, indexation).
• Check that the penalty is within the 2% cap and how interest was applied.
• Verify that expenses were approved at a properly convened meeting.
• Keep receipts — fees paid but not credited are more common than you would think.
• If use is restricted or your name exposed, document it (photos, screenshots, minutes).
• Before buying a property, require the condominium clearance statement.

Frequently asked questions

What is the maximum late penalty on a condominium fee?

The late-payment penalty is capped at 2% under Civil Code art. 1,336(1). Indexation and agreed default interest may also apply; absent an agreed rate, art. 406 applies following Law 14,905/2024, not a fixed 1% monthly rate. Historical arrears require checking the rules for each period.

Can the condominium cut off water or bar the lift for someone in arrears?

The condominium cannot cut essential services or restrict common areas, including leisure facilities, as a private punishment to force payment. This STJ approach is distinct from utility providers collecting separate bills under their own rules. Court collection requires the statutory documents and conditions.

Can my flat be seized over condominium debt if it is my only home?

It can. Art. 3(IV) of Law 8,009/1990 creates an exception to family-home protection for contributions relating to the property itself, including condominium fees. Attachment and any sale depend on the proceedings and available defences; arrears do not automatically mean losing the home.

I bought a flat with condominium debt. Do I have to pay it?

As a rule, yes. Civil Code art. 1,345 makes the buyer liable to the condominium for the seller's debts, including penalties and interest. Any recovery against the seller depends on the contract and facts. Before buying, obtain an updated clearance or balance statement and check the transaction documents.

Can an owner in arrears attend and vote at meetings?

Civil Code art. 1,335(III) makes participation and voting in deliberations conditional on being up to date. An owner in arrears should not be promised unrestricted attendance or speaking rights; the circumstances, including any settlement and other paid-up units, must be examined. This does not authorise humiliation, abusive exposure or restrictions on common areas, or remove lawful ways to challenge resolutions.