It is not uncommon for a management company to charge their own fees on the ledgers of a delinquent condo owner's account when collecting unpaid assessments. Courts are now reviewing account ledgers with scrutiny so it is important for associations to be aware of the legal requirements for collecting management-imposed fees on a delinquent account.

Both the Illinois Condominium Property Act and the Illinois Common Interest Community Association Act provide three requirements that must be met before a fee can be added to a delinquent owner’s account. The three requirements are:

1.      1. The managing agent fees relate to the costs to collect common expenses for the association

2.     2.  The fees are set forth in a contract between the managing agent and the association

3.      3. The authority to add the management fees to an owner’s respective share of the common expenses is specifically stated in the declaration or bylaws of the association

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