Late payment compensation (Gecikme tazminatı)
Also known as: late fee, late payment interest, dues interest, 5 percent, gecikme faizi
Definition
Compensation at 5% per month, for the days of delay, owed by a Turkish unit owner who pays the expense or advance share late (KMK art. 20).
Article 20 of the Condominium Ownership Law provides that a unit owner who is late in paying the expense and advance share must pay late payment compensation at five percent per month for the days of delay.
In practice, the compensation is prorated on a daily basis from the due date until the payment date and is not calculated on a compound basis (no compensation is charged on compensation).
Example: If 1,000 TL of overdue dues is paid 15 days late, the late payment compensation is 1,000 × 5% × 15/30 = 25 TL.
Reminding residents before and after the due date is the most effective way to prevent the compensation from arising in the first place.
In CasaX
CasaX calculates late payment compensation under KMK art. 20 at a daily rate and without compounding; you can define grace days or turn compensation off for a site.
This content is for general information only and is not legal or financial advice. Legislation may change; consult a professional about your specific situation.