Elective upgrades often require an owner vote before any reserve funds can be spent. Any maintenance or repair task that’s not routine may get paid out of the reserve fund. The reserve fund can also be used for things like repainting the building’s exterior or repaving the parking lot. For example, replacing an aging HVAC system doesn’t fall under insurance, so the condo building would have to pay such a cost out of their reserve fund. Reserve funds are mainly for significant repairs or replacements that the condo corporation’s insurance policy won’t cover. A portion of every month’s condo fees go into the reserve fund. The reserve fund is money set aside for major, irregular expenses that the condo corporation may have to pay for. One of the most important things that condo fees go towards is the condo building’s reserve fund. ![]() What do condo fees cover?Ĭondo fees cover several things, some of which are unique to condo buildings. So, while condo living can be an affordable way to get into homeownership, it’s important to budget appropriately. Someone who’s way behind on condo fee payments can find themselves in serious legal trouble with the condo corporation-even being forced to sell their unit in extreme cases.Ĭondo fees are separate from mortgages, and separate from property taxes. Since condo fees are mandatory, there’s no way to skip out of paying them if you’re a condo owner. You can, however, find out what the fees will be before you make an offer, so at least you can budget for them. When you buy a condo, the fees are the fees, and you don’t get to negotiate that aspect of the purchase. We’ll go over what condo fees cover in the following section.Ĭondo fees are set for each unit, and are non-negotiable. The condo corporation uses these fees for many things, like maintenance, landscaping, insurance, and more. Condo fees are also known as strata fees, maintenance fees, or co-ownership fees. These fees go to the condo corporation-an entity shared between all owners that operates the building and is in charge of all the common property. ![]() ![]() Condo fees are a mandatory monthly charge that everyone who owns a condominium must pay.
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