Condominium Fees: Everything You Need to Know

Condominium fees are an important factor to consider when purchasing a condominium. It is important to fully understand how these fees are allocated among the co-owners, as well as the different types of fees and their payment terms.

Condominium fees are expenses incurred in the operation and maintenance of a building or a group of single-family homes organized as a condominium. These fees are divided among the co-owners based on their share of ownership in the condominium.
 

There are two types of condominium fees: recurring fees and one-time fees.
 

Recurring expenses, also known as general expenses, refer to the recurring costs associated with the administration, maintenance, and operation of the building. They are included in the condominium’s projected budget and approved annually by the general meeting of co-owners. Current expenses include, in particular, the property manager’s fees, the costs of holding general meetings, building insurance, cleaning of common areas, household waste collection fees, minor repairs, water, gas, and electricity bills, maintenance contracts for shared equipment such as the boiler or elevator, as well as the upkeep of green spaces.
 

Extraordinary expenses, on the other hand, are one-time expenditures not included in the condominium association’s projected budget. Decisions regarding them are made on a case-by-case basis at the general meeting of co-owners. Exceptional expenses may relate to improvement projects, such as renovating existing structures, adding new equipment such as an elevator, renovating or creating common-use areas, or adding stories to a building. They may also involve maintenance and preservation work, such as exterior wall renovation, roof repair, painting common areas, or replacing a boiler. Finally, extraordinary expenses may also include technical and environmental assessments—such as those for asbestos, lead, or termites—as well as consultations with experts, such as a lawyer, an architect, or a surveyor.
 

Payment of condominium fees is divided among the co-owners based on their share in the condominium.

 Owners must pay their current expenses quarterly, or monthly or quarterly, depending on the rules established by the condominium association. On each due date, owners receive a notice of expenses, or an advance payment for expenses, from the building manager in the form of an invoice. The amount of the assessment corresponds to the annual expenses approved at the general meeting, apportioned among the owners.
 

As for extraordinary expenses, they are to be paid by the owners in accordance with the terms established when the expenditure was approved by a vote at the condominium association’s general meeting. They are the subject of a separate assessment from the one sent to owners for routine expenses. For significant extraordinary expenses, such as construction projects, the property manager may require the payment of a cash advance.