Definition
A charge added to an owner's account when dues or assessments aren't paid by the due date.
A late fee is the charge an association adds when a payment isn't made on time. It encourages timely payment and offsets the administrative cost of collections.
To be enforceable, late fees must be authorized by the governing documents or law, reasonable in amount, and applied consistently to every owner. They should be spelled out in the collections policy so owners know exactly what to expect if they fall behind.