Sample No-Debt Letter for Apartment Dues

What Is a No-Debt Letter?

A no-debt letter is an official document issued by the apartment or estate management showing whether a unit has any outstanding common expense (dues) debt. Buyers request it during a sale to avoid unpleasant surprises after the transfer.

Common expense debt is tied to the unit itself, and the management can register a statutory mortgage over a debtor's unit for unpaid shares. For this reason it is established and sound practice for a buyer to document the debt position before the transfer.

Who Issues the Letter?

The letter is drawn up and signed by the manager or the management board. Because the manager is liable to the owners as an agent, issuing a letter that does not reflect the true position creates liability.

In buildings without a manager, the document is issued by a person authorised by the general assembly. Where a professional management company is engaged, its authorised representative signs.

What the Letter Should Contain

• Name and full address of the building or estate
• Unit number and the owner's full name
• The period covered (up to which date)
• The debt position: no debt, or the outstanding amount
• Any late payment compensation and advance contributions
• Date of issue, manager's name and signature

Copyable No-Debt Letter Sample (Full Text)

……………………… APARTMENT / COMPLEX MANAGEMENT

NO-DEBT LETTER

Date: …/…/20…

To Whom It May Concern,

……………………… (Full Name), owner of independent unit no. …… in ……………………… Apartment/Complex, has no outstanding common expense (dues), advance or late payment compensation debt owed to our management as at …/…/20….

All payments for the periods up to the stated date have been collected and the unit account is closed.

This letter has been issued at the request of the person concerned for use in title deed transfer proceedings.

……………………… Apartment/Complex Management

Manager: ……………………… (Full Name) — Signature

Contact: ………………………

Filling Guide

Always state the date up to which the letter applies. An undated "no debt" statement may be read as covering later periods too, leaving the management exposed.

If there is a debt, do not refuse to issue the letter; state the amount with a breakdown by period. This allows the parties to settle at the point of sale and secures the management's claim.

Prepare two copies and keep one in the management file.

Related Processes

To avoid disputes over debts arising after the transfer, the period up to the sale date and the period after it should be calculated separately. Where a transfer takes place mid-period, the parties agree how the dues are apportioned by day.

The new owner should give their contact details to the management once they take possession, and the management should update its resident records.

Common Mistakes

• An undated letter: without a stated period, it can be used for later debts as well.
• Relying on a verbal statement: saying "there is no debt" is not enough; a signed and dated document is needed.
• Overlooking advances: dues may be paid while an advance or extraordinary contribution remains outstanding.
• Issuing an inaccurate letter: writing "no debt" when a debt exists makes the manager liable to the other owners.

This content and template are for information only and are examples. Adapt them to your specific situation.