What to Do About a Neighbor Who Doesn't Pay Dues: The Enforcement Process Step by Step

Unpaid Dues Affect Not Only the Debtor but the Entire Building

In an apartment building, a few units failing to pay dues is a bigger problem than it seems. Expenses such as the doorkeeper's salary, electricity and elevator maintenance are fixed every month; missing collections fall directly onto the shoulders of the other unit owners. The good news is that the Condominium Ownership Act (KMK) gives management strong legal tools for dues collection.

Step One: Written Warning

The process should always begin with a friendly, written reminder. A written notice stating the debt amount and the accrued late-payment interest is sent to the defaulting unit owner. The notice being dated and documented strengthens your hand in any later enforcement or lawsuit stage. In many cases, the debtor pays upon seeing an official warning; it is best if the matter is resolved without going to court.

Step Two: Notary Notice (Ihtarname)

If the written reminder yields no result, an official notice is sent through a notary. This both shows the debtor that the process has become serious and creates the documentary basis for the legal proceedings. The notary notice is also the foundation for the subsequent enforcement proceedings.

Step Three: Enforcement Proceedings

If payment is not made despite the notice, the manager may initiate enforcement proceedings on behalf of the other unit owners. An important point: the manager does not need a separate general assembly decision to use this power; the KMK grants the manager the direct authority to pursue proceedings. Enforcement proceedings claim not only the principal debt but also monthly late-payment interest of 5% and attorney/proceedings costs.

If the debtor does not object to the proceedings, they become final and attachment steps may begin. If they do object, the management must file an "annulment of objection" lawsuit.

Step Four: Lawsuit and Statutory Mortgage

If the debtor objects or persists in non-payment, a lawsuit is filed at the Civil Court of Peace. In addition, Article 22 of the KMK provides a significant safeguard: the other unit owners may register a statutory mortgage on the debtor's unit to secure their receivable. This ensures the debt can still be pursued even if the unit changes hands.

Important Points to Know

• Late-payment interest: A monthly 5% late-payment interest accrues for each day of non-payment (unless the management plan sets a different rate).
• Statute of limitations: Dues receivables are subject to a 5-year statute of limitations. Debts older than that become harder to pursue; that is why collection should not be delayed.
• Cutting off water/electricity is prohibited: A manager cannot cut off the debtor's electricity or water. Doing so is unlawful. Only legal remedies (enforcement, lawsuits) may be used.
• Even a vacant unit owes dues: The unit being empty does not remove the dues obligation.

The Best Collection Is the One Made Without Delay

Experience shows that as debt piles up, collection becomes harder. A system that tracks dues digitally, detects delays automatically and sends timely reminders to the debtor resolves most problems before the enforcement stage. Regular and transparent tracking both eases collection and preserves trust among the unit owners.

Related Topics

We covered the steps of enforcement proceedings in our "enforcement proceedings" article, pre-lawsuit mandatory mediation in our "mandatory mediation" article, and the statute of limitations on the debt in our "statute of limitations" article.

This content is for informational purposes. Consultation with an attorney is recommended for concrete enforcement and lawsuit processes.