the answer of justice

A court set a higher interest rate than other debts, highlighting the problems of non-payment of expenses for the entire consortium

12/08/2025 – 09:35 am

A court in La Plata tightened the criteria for charging interest on expenditure debts and set a particularly reduced interest rate for defaulting owners.

The Second Appeals Chamber of Civil and Commercial Matters of the capital of the Province of Buenos Aires ordered the application of the active tariff of Banco Provincia for “remaining operations”, with a 100% increaseon the capital required by a consortium for a co-owner of the debtor.

The cause lay in a Collection of costs for a debt of more than 864,000 pesos. According to the court, in the absence of a tariff established by the meeting of co-owners, it is appropriate for the judiciary to intervene and determine it.

The ruling highlights the central role that costs play in the daily life of buildings. “The regular payment of the costs becomes essential for the subsistence of the consortium,” the judges noted, noting that these funds finance the basic services and general maintenance of the property.

Interest on expense debts

The chamber emphasized that the The money collected is used for the overall operation of the building and non-payment by one owner directly affects the rest of the neighbors. “Failure to comply with the obligation to reimburse costs is more serious and disastrous,” the judges found.

They also warned against it Overall effect of late payment: “Affected are the compliant consortium members who, in addition to their own costs, also have to bear the debtor’s costs,” due to the solidarity-based nature of horizontal property rights.

The chamber decided on this basis Higher interest rates apply than with other debts. According to the judgment, these surcharges fulfill a key function: “They represent an effective incentive to secure payment” and prevent late payment from becoming an economic incentive for the debtor.

The court finally ordered this Interest calculated on the active interest rate of Banco Provincia for remaining operations in pesos, increased by 100%, from each due date until actual payment.

The decision was made by judges Ricardo Sosa Aubone and Jaime López Muro of the Civil and Commercial Court of Appeal of La Plata.

Late payment of expenses increases

Non-payment of expenses is not an isolated case. The urban consortia note that a More and more owners and tenants are paying their bills late. In some districts the proportion is over 17 percent.

Debt processes are progressing and the effect is reflected in services and even personal loan installments. The retail payment chain is under pressure.

In this context the The funding appears to be a temporary bridge to avoid cutsDamage or failure of essential services within the buildings. However, experts warn that this does not solve the underlying problem.

Martín Eliçagaray, horizontal real estate technology consultant and founder of Simple Solutions, points out that the The system is at its most delicate point in the last decade. “Households are reaching their limits. Expenses no longer compete with leisure time or unusual purchases, but rather with rent, with the supermarket and with medication. The domestic economy is organized in survival mode.”