Fees and finances
Common Expenses Fees
Common expenses fees (also known as condo fees and maintenance fees) are used for maintaining the condo corporation’s common elements, contributions to the reserve fund, and paying for important services such as cleaning, building maintenance and condo management services.
How condo fees are calculated
Your condo corporation’s declaration sets out the proportions of your contribution. The proportion is a percentage and may vary by the size of an owner’s condo unit.
- Condo Corporation No. 123 has a budget of $1,000 per month
- The corporation’s declaration specifies that unit 101 must contribute 5% in fees
- Therefore, each month, the owner of unit 101 pays $1000 x 0.05 = $50
Generally, you can arrive at the amount of your contribution by of multiplying the condo corporation’s annual budget against these proportions.
What is a Special Assessment?
A condo corporation creates a budget for every fiscal year and must find a way to cover its expenses if there is a budget shortfall. Large shortfalls can force the corporation to assess an extra one-time charge to each condo unit, known as a special assessment. Special assessments can occur for many reasons, including unforseen repairs or the corporation losing a court case.
What Are Chargebacks?
Condo corporations in some instances may add or “charge back” costs that the condo corporation has incurred to the common expenses payable for an owner’s condo unit.
Chargebacks are typically done when a condo corporation has incurred costs due to an act or omission by an owner and help to ensure that those costs are not passed onto the other owners. The Condominium Act sets out specific situations in which condo corporations can charge back certain costs to the common expenses payable for an owner’s condo unit. Condo corporations may also add costs to the common expenses in accordance with the condo corporation’s declaration.