Understanding Debt in Residential Complexes
Living in a residential complex comes with perks such as security and the upkeep of common areas. However, it also entails certain financial responsibilities, particularly the prompt payment of administration fees.
Legal Framework Surrounding Debt Obligations
In Colombia, laws govern when debts become unenforceable, under what conditions these periods may be interrupted, and the penalties that may be imposed for delinquency. The Civil Code outlines a general prescription period for such obligations.
Prescription Periods
According to Colombian regulations, “executive action expires in five years, and ordinary action expires in ten years.” This indicates that claims for common expenses can be legally dismissed after five years, assuming no partial payment or legal acknowledgment restarts the timeline.
Types of Actions
Discussions often arise regarding whether fees should be pursued via executive or ordinary action. This choice impacts the applicable time frame, necessitating careful evaluation based on the situation.
How to Invoke Prescription
It’s crucial to note that prescription does not activate automatically; debtors must raise this defense in court to extinguish the obligation. A report published by Week states, “the extinction of the obligation by prescription does not occur automatically… the debtor must invoke the exception before a judge.” Until a judicial ruling is obtained, the co-ownership retains the right to pursue payment.
Interrupting the Prescription Period
The Civil Code specifies that a partial payment, a settlement, or the initiation of legal action can interrupt the prescription, effectively resetting the time frame. Article 2536 deals explicitly with this process.
Late Payment Interest and Sanctions
Law 675 of 2001, which regulates horizontal property, states that late fees may accrue at a rate of 1.5 times the current bank interest certified by the Financial Superintendence, unless the assembly opts for a lower rate. Currently, this translates to an approximate 25.17% yearly interest rate on late payments, barring alternate arrangements made by co-owners.
Additionally, the law permits other enforcement mechanisms against non-compliance, including publishing the names of defaulters, imposing fines, and restricting access to shared amenities such as pools or gyms. Any measures taken must be clearly stated in the community regulations and executed with due process.
Proving Expiry of Debt
If an owner believes their debt has reached its expiration due to the statute of limitations, merely informing the administration is insufficient. The proper action involves presenting the case to a judge for formal recognition. As highlighted by Week, “the correct way is not to demand it by letter… but to raise the exception of prescription before a judge for a declaration.”
To conclude, administrators and board members must meticulously document all communication with debtors. These records are critical as they might play a vital role in interrupting the statute of limitations and in potential judicial proceedings.