Rakvere tn 36: instalments and consequences of breaching settlement

The court approved an acknowledged obligation with instalments and conditional late-payment interest.

Narva linn, Rakvere tn 36 korteriühistu sought management charges and late-payment interest in expedited payment-order proceedings. After service of the payment proposal, debtor XX and the association submitted a written settlement. The claim was transferred from Pärnu Maakohus to Viru Maakohus, which approved the settlement before starting to examine the underlying debt application and discontinued the case. The acknowledged obligation includes debt, accrued late-payment interest, a state fee of 25 euros and legal costs of 166.80 euros. Payment was deferred into twelve equal monthly instalments. Breach of the schedule makes the entire obligation immediately payable; upon breach, the association may also claim late-payment interest of 0.02% per day solely on the principal specified in the settlement, running from 1 June 2026. Costs outside the settlement remain with each party. The order does not establish payment of future instalments.

The settlement was approved and proceedings discontinued. Breach triggers immediate payment and conditional late-payment interest.