That term means the cancellation or destruction of a right because the time for enforcement has passed.
Therefore, waiting more than the term fixed after the due date to make a demand for payment wipes out the commonhold’s right to collect the money owed..
There were two different approaches held by courts regarding maximum term from which a service charge is deemed unrecoverable.
Most of the courts held that the term is 15 years from when the debt is due under section 1964 of the Civil Code. Other appellation courts held that s. 1966 (3) of the Civil Code which fix a five years term must be applied.
Subsection 1964 (2) of the Civil Code was amended by the 42/2015 Act which came into force in October 7th, 2015.
Since then the five years term must be applied to the fees accrued after this date.
Fees accrued before this date are not subject to the five years term under section 1.939 of the Civil Cod which establishes a transitional framework
- A fee accrued the 1th January 2007 can’t be recovered by court proceedings after October 8th 2020 (5 years after the date when the amendment came into force)
-A fee accrued the 1th of January 2003 can’t be recovered after 1th of January 2018 (15 years after the fee was accrued )