FAQS

Q. Can interest be charged even if our Declaration is silent on the subject?

A. Yes. Florida Statutes permit Associations to charge interest even if their Declaration does not specifically grant them the right.

Q. If it’s that simple, why can’t I do this myself?

A. Florida Statutes are very specific about how interest can be charged and how payments must be applied.  Failure to follow the statutes results in the Association charging less than the allowable amount of interest or charging interest on amounts that are not subject to interest charges.

Q. Why should we charge interest if the current owner can’t pay?

A. Any payment received by an association must be applied to any interest accrued by the association before it is applied to the delinquent assessments. In order for an owner to pay their delinquent assessments they must first pay the accrued interest.

Q. How does charging interest help the association in the short run?

A. Our experience has shown that many habitual late payers stay current on their assessment obligations when faced with interest charges. This smooths the association’s cash flow.

Q. Does AAG post the interest charges to the owner’s ledger?

A. No. We will send you the amount of interest to post to the ledger and the association, their property manager, attorney or CPA will post the amount to the delinquent owner’s ledger.

Note:

Nothing in this document should be construed as offering legal advice. We urge you to consult your attorney for any questions you may have regarding any legal issue or interpretation of any statute.