Monthly common expense fees (condo fees) cover the costs of keeping common elements in good repair. They also cover the operating costs of things like fitness facilities, party rooms and swimming pools.
If the condominium has staff, like security, cleaners and concierge, these costs will be covered by monthly condo fees.
Monthly fees may cover all, some or none of the costs of your utilities. Condo buyers need to make sure they know:
The condominium declaration shows (in percentages) how much each unit must pay in monthly condo fees. Although it is not required by law, condo fee percentages are usually calculated by the size of a unit. For example, owners of a three-bedroom condo typically pay a higher monthly condo fee than owners of a one-bedroom condo.
You are responsible for paying your condo fees. They are your share of the operating expenses of the condo corporation.
Generally, if you do not pay your condo fees your mortgagee will likely be notified and the condo corporation will have the right to register a certificate of lien against your unit. Condo fee payment is as important as paying your mortgage and your property tax.
Increases can happen at any time and for a number of reasons, like an unexpected major repair, a lawsuit involving the corporation, or just to keep up with rising costs.
These increases tend to occur when the annual budget is set by the board of directors. Check when the last increase took place to help you determine when to expect another.
Owners of newly-built condos can experience a significant increase in condo fees in the second or third year of ownership. This is because fees to cover the cost of certain amenities, like a guest suite that a corporation may have to buy as an asset, might not take effect until year 2.
Although developers estimate monthly expenses for the first fiscal year of a condo corporation, it isn’t until the board of directors takes over and conducts the first reserve fund study that you begin to know the true costs of maintaining the building.
The sale of the severed portion of vacant land would not be subject to GST/HST since it is not capital property used primarily (more than 50%) in a business and it is not being sold in the course of a business. However, if the land was subdivided into more than two parts, sales of the severed portions are not exempt unless the portion is sold to a relative (or to a former spouse or common-law partner) for their personal use.