Condominiums: Responsibilities and Collecting Unpaid Fees

This page is a translation of the original Portuguese text, provided for convenience. It deals with Brazilian law. If there is any discrepancy, the Portuguese version prevails. Read the original in Portuguese

Living in a condominium requires knowing the responsibilities of unit owners, the síndico (the building manager elected by the owners) and the management company, as well as the legal tools available for collecting unpaid fees.

Legal Structure of the Condominium

The condominium is governed by Articles 1.331 to 1.358 of the Brazilian Civil Code. These provisions set out the governance structure, the rights and duties of unit owners, the powers of the síndico, and the rules for holding assemblies. Alongside the Civil Code, the condominium declaration (convenção condominial) and the house rules supplement the statute with norms specific to each development.

The condominium declaration is the foundational document that governs life in the condominium. It must be approved by owners representing at least two-thirds of the undivided ownership shares, and it must be recorded with the real estate registry office to be valid against third parties. This document defines the intended use of the units, each owner’s proportional share of expenses, the penalties for violating the rules, and the criteria for management.

The house rules spell out the details of living together: quiet hours, use of common areas, rules for moving, rules on pets, and procedures for carrying out work in private units. While the declaration deals with the structural and legal aspects of the condominium, the house rules address everyday matters that directly affect residents’ quality of life.

Responsibilities of the Síndico and the Management Company

The síndico is the legal representative of the condominium, elected at an assembly for a term of up to two years, with reelection permitted. The síndico’s duties include representing the condominium in and out of court, collecting contributions from unit owners, complying with and enforcing the declaration and the house rules, rendering accounts to the assembly, and maintaining the building’s common areas.

A condominium management company is hired to assist the síndico with operational and administrative tasks. Although it makes management easier, hiring a management company does not transfer the síndico’s legal responsibility. The síndico remains answerable to the unit owners and to the law for every decision and management act carried out during the term.

Rendering accounts is a fundamental obligation of the síndico, who must present monthly financial statements and submit the annual accounts to the ordinary general assembly for approval. Failure to render accounts can lead to the síndico’s removal by decision of an assembly, which one-quarter of the unit owners may call when there are signs of mismanagement of condominium funds.

It must be approved by owners representing at least two-thirds of the undivided ownership shares, and it must be recorded with the real estate registry office to be valid against third parties.

The professional síndico, an increasingly common figure in Brazilian condominiums, is hired by the condominium to perform management duties for pay. Hiring one is advantageous when unit owners do not want to take on the role, or when the size of the development calls for professional dedication and specialized technical knowledge of condominium management.

Collecting Unpaid Fees from Delinquent Owners

Delinquency in condominium fees is a problem that directly affects every resident, because it drains the condominium’s funds and can make it impossible to maintain the common areas and provide essential services. The Civil Code allows a fine of up to 2% on the debt and default interest of 1% per month, in addition to inflation adjustment on overdue amounts.

The condominium declaration may provide for additional penalties against an owner who repeatedly falls behind. Law No. 14.905/2024 updated the rules on default interest, allowing the condominium to apply the charges provided in the declaration, as long as they were approved at an assembly and are consistent with current law, without amounting to abuse or imposing an excessive burden on the debtor.

The collection process generally begins with an extrajudicial notice to the delinquent owner, granting a deadline to bring the account current. If no payment is made, the condominium may bring a court action to collect. Under the procedural reform introduced by the 2015 Code of Civil Procedure, overdue condominium assessments now have the status of an extrajudicial enforcement instrument, which allows direct enforcement without first filing an ordinary collection lawsuit.

Attachment of the debtor’s condominium unit is an extreme measure, but it is legally possible. A property that secures a condominium debt may be attached and sold at auction, even if it is the debtor’s family home. The family home protection does not apply to condominium debts, as expressly provided in Law No. 8.009/90.

Construction and Improvements in Common Areas

Work in a condominium is classified as necessary, useful or luxury (ornamental), and each type requires a different quorum for approval at an assembly. Necessary work (aimed at preserving the building or preventing its deterioration) may be carried out without assembly authorization when it is urgent. In that case the síndico decides and later reports to the unit owners.

Useful work, which improves the use of common areas without being indispensable, requires approval by a majority of the owners present at an assembly specially called for that purpose. Luxury work, which serves mere enjoyment or recreation (such as building a swimming pool or sauna), requires approval by two-thirds of the unit owners to be carried out with condominium funds.

Creating a reserve fund for future work is a recommended practice, and it must be provided for in the declaration or approved at an assembly. This fund lets the condominium carry out preventive and corrective maintenance without extra special assessments, spreading the cost of improvements over time in a planned and balanced way for all unit owners.

Condominium Disputes and Legal Solutions

Disputes between neighbors are part of condominium life and can involve excessive noise, leaks between units, improper use of common areas, unpaid fees, and disagreements over parking spaces. Condominium mediation has proven effective in resolving these disputes, sparing the parties the emotional strain and the cost of prolonged litigation.

An owner who repeatedly violates condominium rules may be penalized with progressive fines ranging from three to five times the regular monthly condominium fee, as decided by an assembly with a three-quarters quorum of unit owners. In extreme cases of antisocial behavior, the fine can reach ten times the monthly fee owed by the offender.

Structural problems for which the condominium is responsible (such as leaks originating in common areas that damage private units) must be handled diligently by the síndico. Failure to make repairs can give rise to civil liability for the condominium and for the síndico personally, if negligence in managing and maintaining the areas the condominium is responsible for is proven.

For complex legal questions involving condominium life, the guidance of a specialized attorney in real estate law and condominium law is essential to ensure that the rights of all parties are properly respected and protected under current law.

Frequently Asked Questions

Can the condominium attach the delinquent owner’s apartment?

Condominium debt is an express exception to the protection of the family home from attachment under Law No. 8.009/90. The condominium may sue to collect the debt and, if there is no payment or there are not enough other assets, ask the court to attach the debtor’s own unit. After attachment, the property can be sold at auction to satisfy the overdue condominium debt with all legal charges.

What quorum is needed to approve work in the condominium?

The quorum depends on the type of work. Urgent necessary work does not require prior approval, but the síndico must report afterward. Useful work requires a simple majority of those present at the assembly. Luxury work requires approval by two-thirds of all unit owners. Changes to the building’s facade require unanimity, as expressly provided in the Civil Code.

Can the síndico be held personally liable for mismanagement?

A síndico who acts with negligence, recklessness or willful misconduct in managing the condominium may be held liable in both civil and criminal proceedings. Failing to render accounts, diverting funds, neglecting necessary repairs and hiring overpriced services can create an obligation to repay the damage caused to the condominium. The assembly may remove the síndico, and the condominium may file a lawsuit to recover the losses.

As informações deste artigo são de caráter informativo e não substituem consulta jurídica individualizada. Cada caso possui particularidades que exigem análise específica.