Let's break down condo fees, if you aren't careful these can sneak up on you and leave you feeling very unsure of your buying experience. Condo fees are divided into three categories:
1. Utilities
- water, hydro, and sometimes heat, as well as some maintenance. Most brand-new condos are being built with individual heat pumps that are paid for by individual owners. Make sure you are clear on your condos setup before you buy.
2. Common Areas
Amenities also make up a portion of your fee. The more amenities there are, the higher your fees will be. So think about whether you'll use them. Things like snow and garbage removal are also included here.
3. Reserve Funds
A portion is set aside in a reserve fund, which every condo board must maintain for big-ticket expenses. If that fund doesn't quite cover the bill, each condo owner will be required to pitch in proportionately to cover the cost.
Before you make an offer
Get a copy of the condo's status certificate. It will include things like the condo's budget, any pending legal matters, information about the reserve fund, current maintenance fees, and whether any increases are planned in the near future. Knowing the condo's financial status can help you make the most informed financial decision.
Before you make an offer
Get a copy of the condo's status certificate. It will include things like the condo's budget, any pending legal matters, information about the reserve fund, current maintenance fees, and whether any increases are planned in the near future. Knowing the condo's financial status can help you make the most informed financial decision.