Unit owners pay a monthly condominium fee to cover their portion of the operating expenses of the common property elements. A portion of this fee is allocated to the reserve fund that is created to ensure that there are sufficient funds available for major repairs and replacements over the life of the building. Calculation of condominium fees varies by province but is usually specified in the governing documents of the condominium corporation. Condominium fees are usually calculated from the annual operating cost of the entire condominium and divided by the percentage of your contribution to the common expenses (your unit factor) as outlined in the condominium governing documents and/or local legislation.

These fees may include:

• Day-to-day care and upkeep of the common property elements (e.g. snow removal, landscaping, cleaning of common elements including carpets and exterior windows, heating/cooling system maintenance)

• Contributions to the reserve fund, which is used to pay for major repairs to, and replacement of, common building systems to ensure the condominium is kept in good repair over the life of the building

• Property management fees

• Building repair and maintenance

• Salaries of condominium employees (e.g. superintendent, security guards, concierge)

• Amenities (e.g. use of pool, recreational facilities, party room)

• Utilities

• The corporation’s insurance policies

• Cable and/or Internet access

What is, and is not, included in a condominium’s monthly fees should be clearly outlined in the operating budget. You should be able to find out more about the condominium fees from the vendor, property manager, the Board of Directors or the developer prior to purchasing a unit. They should be stated in the disclosure statement (for new condominiums) or in the status certificate (for resale condominiums). These fees may have to be adjusted from time to time to reflect the changing costs of goods and services and the state of the reserve fund. Each adjustment is reflected in the next year’s budget. If the Board overestimates the common expenses, the surplus is wholly applied either to future common expenses or is paid into the reserve fund. Refunds are not given to unit owners. If a unit owner sells a unit before the end of the condominium corporation’s fiscal year, the owner cannot obtain a refund for common expenses but may add it to the unit’s purchase price.

Condominium fees are neither optional nor negotiable. For example, unit owners are required to pay a share toward the care and upkeep of amenities such as swimming pools, regardless of whether or not they plan to actually use the pool. Unit owners cannot withhold payment of their condominium fees if they are displeased with the Board of Directors, the property manager or other unit owners. In some provinces, the condominium corporation can register a lien on your unit if you do not pay your share of the common expenses. This means the corporation may have the right to sell the unit to recover the money it is owed.

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