Often I am asked what expenses a condo owner is responsible for. Each condominium corporation’s governing documents (Declaration & By-Laws), will identify what expenses are paid for by the condominium corporation. Condo owners contribute towards these expenses. Typically, condo owners are responsible for regular condominium fees and possible special assessments.
Condominium fees are used for 2 main purposes – 1) to pay for monthly and annual expenses of managing the condominium corporation and 2) to fund contributions to the Reserve Fund and a Contingency Fund, if applicable. These expenses are all identified in the annual budget. The Board of Directors is required to prepare and distribute a copy of the budget to all unit owners in accordance with their By-Laws. Continue reading