Durham Region For Sale By Owner Private Real Estate Sales

When selling condos, sellers must confirm the monthly maintenance fees. On the Ontario Agreement of Purchase and Sale, they will be required to verify what they pay to the company that manages the condominium. The buyer will want confirmation what the fees are and what they cover.

Condo fees are based on the size of the unit and the cost to run the complex. For example, if the operating costs are $.20 per square foot each month, a 1,500 square foot unit will pay $300,00. A 1,000 square foot unit will pay $200.00 a month. The management company will break the expenses down on a square foot basis. Then this figure is multiplied by the square footage of each unit.

The services that condo fees cover will vary from condo to condo. The most common ones are the:

• Water bill. In most cases there is a single water line with one meter that services the complex.
• Outside maintenance. This can include snow plowing and cutting the grass.
• Maintenance of common elements. These are areas that all unit owners use. For example, the hall ways in a condo apartment building.
• Hydro. Some condo complexes do not have individual meters for each unit. The management will receive a single bill from the power company and this expense will be shared by all units.
• Building insurance. To insure that the entire complex is adequately covered, the management company will purchase fire insurance. This cost will be paid by all units through the monthly maintenance fees. Each owner must purchase their own contents insurance.
• Reserve fund. In Ontario every condo corporation must maintain a reserve fund. Every month a specified amount of money is collected from each unit to contribute to this fund. It is not uncommon for the balance to run into the hundreds of thousands of dollars. The management company will use this money should a repair or maintenance be required. An example is installing a new roof. If this runs $100,000, the money would be available from the fund. This eliminates the need for the company to chase each unit owner for their share.

When purchasing a condo, be sure to confirm what the monthly maintenance fees are and what they cover.  

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