In Quebec, condo fees are mandatory for all divided co-ownership properties. Paid monthly by all co-owners, these fees can vary significantly depending on your situation.

Here are some things to consider in order to have a clearer picture:

What is the purpose of condo fees?

In general, condo fees are used to cover all of the shared expenses of the co-ownership. These include the costs of regular maintenance of the common areas (cleaning, snow removal, electricity, etc.), the facilities offered (concierge, pool, gym, etc.), insurance, and the contingency fund. The latter is, in a way, the emergency fund of the co-ownership for major maintenance work and unforeseen events.

DID YOU KNOW?

Since January 2020, Law 16 states that: "Every five years, the syndicate must obtain a study of the contingency fund establishing the sums necessary for this fund to be sufficient to cover the estimated cost of major repairs and replacement 1 of the common areas. The sums to be paid into the contingency fund are determined on the basis of the recommendations made in the fund study and taking into account the evolution of the co-ownership, in particular the amounts available in the contingency fund."

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How is it calculated?

Simply put: you will have to pay your fair share. The greater the relative value of your share in the building, the higher your contribution will be. The age and current condition of the building will also have a significant impact on the expenses to be expected since the cost of work should increase considerably over the years. On the other hand, more recent co-ownerships do not always have a well-stocked contingency fund. It is therefore the responsibility of the co-owners to ensure that they contribute to this fund in anticipation of larger expenses to come in the next 5, 10 or even 20 years.

Extraordinary contribution

Caution, too low condo fees could have a long-term impact on the financial health of the co-ownership's contingency fund. In the event of major work (roof breakage, masonry, window replacement, etc.), the contingency fund may be infused to cover the total cost of the work, which would force co-owners to cover an additional charge, in addition to their usual monthly contribution.

Interested in purchasing a condo? Our Proprio Direct real estate brokers can help you determine your budget to make an informed choice that perfectly suits your needs. Speak with one of them now!