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Am I legally obliged to pay service charges?
Service charges are one of many obligations under the lease agreement and the contract with the Owner’s Management Company, which you signed when you purchased your property. If you don’t pay, others will be forced to cover the shortfall, but your fees, plus an interest rate, will eventually be deducted from the property’s sale price.
When you go to sell your property, you’ll need a requisition from the OMC, which you won’t be able to sell until you sign. They have the right to defer payment until all fees have been paid. If the interest rate was, say, 10%, this could add up to a lot of money.
The fees you pay go towards the upkeep of your development, and the value of your home would plummet if the OMA was not operational and well-funded.
The fees charged by the agent managing the OMC typically range from 2% to 8%, depending on the complexity or scope of services required in the development under management, as well as the size of the development.