Condo fees explained for buyers: what the monthly fee includes
A condo fee, which the Condominium Authority of Ontario calls common expenses, pays to maintain the common elements, to contribute to the reserve fund and to cover services like cleaning and management. Each owner pays a share set by the proportions in the condo corporation’s declaration. When a buyer asks what they are getting for the fee, answer from the listing’s documents: what the fee includes, the reserve fund study, the budget and any special assessments.
The condo fee is the number a buyer compares first and understands last. They see a monthly amount in the listing, add it to the mortgage payment and move on, or they see a high one and walk. Either way you will get the question: what am I paying for? A clear answer helps the right buyer say yes and keeps the wrong one from being surprised after closing.
What the fee pays for
The Condominium Authority of Ontario describes the fee as the owners’ share of the corporation’s common expenses. They fund three things:
- •The common elements: maintaining the parts of the property owners share.
- •The reserve fund: part of every fee goes into it.
- •Services: the CAO names cleaning, building maintenance and condo management as examples.
What is bundled in varies by building. Some fees include heat, water or parking, and others leave those to the owner’s own bills. That is why the listing’s “fee includes” line matters as much as the amount.
Why two similar units pay different fees
Each owner’s share comes from the proportions set out in the corporation’s declaration. The CAO’s example is a $1,000 monthly budget and a 5% share, which makes $50 a month. So a larger unit can pay more than a smaller one in the same building, and two buildings with similar units can differ widely because their budgets, services and amenities differ.
For a buyer comparing buildings, the fee per square foot is a fair first look, but only once they know what each fee includes. A lower fee that leaves out heat and water is not cheaper than a higher one that includes them.
The reserve fund
The CAO says the reserve fund is held for major repairs and replacements of common elements and assets. The Condominium Act requires reserve fund studies to check whether the fund and the owners’ contributions are enough for the expected costs. The CAO’s page says a class 1 study is done within the first year after registration, and after that class 2 and class 3 studies alternate, at least every three years, prepared by qualified professionals.
The CAO also says the funding plan from a study may require the board to increase contributions. For a buyer, that is the link between the reserve fund study and the fee: a fund that is behind the study’s plan can mean higher fees later. Ask for the latest study and read its summary, or have the buyer’s lawyer do it.
Special assessments and chargebacks
Two charges sit outside the monthly fee, and buyers should hear about them from you first:
- •Special assessments: the CAO says large shortfalls can force the corporation to assess an extra one-time charge to each unit, for example after unforeseen repairs or a lost court case.
- •Chargebacks: costs the corporation incurs because of an owner’s act or omission can be charged back to that owner’s unit.
Whether any assessment has been levied or is planned is a question for the status certificate package and the board’s minutes, so point the buyer’s agent there rather than guessing.
How to talk about the fee
- •Put what the fee includes in the listing, in plain words, next to the amount.
- •Know the building’s last reserve fund study date before the first showing, not after the first offer.
- •Say what you know and what you do not. “The status certificate will show that” is a fine answer.
- •Never promise the fee will stay the same. Fees follow the corporation’s budget.
- •Keep the status certificate package ready so buyer agents read the documents themselves.
Frequently asked questions
What is the difference between a condo fee and common expenses?
They are the same thing. The Condominium Authority of Ontario uses “common expenses” for the owners’ shared charges that fund the common elements, the reserve fund and services.
Does the condo fee include the reserve fund?
Yes. According to the CAO, common expenses cover contributions to the reserve fund along with maintenance and services.
Can the condo fee go up?
It can. Each owner pays a share of the corporation’s budget, and the CAO notes a reserve fund study’s funding plan may require the board to increase contributions.
Is a special assessment part of the monthly fee?
No. It is an extra one-time charge to each unit when a shortfall is large, according to the CAO.
How Listing Launchpad handles condo fee questions
Listing Launchpad was built so the answers to these questions live on the listing and not in your inbox.
- •The “what does it include” gap: condo listings have fields for the fee amount and frequency, what the fee includes, and remarks, so the line buyers care about is filled in.
- •Typing it all in: upload the status certificate documents and Pull the details from them has the AI read up to five of them and fill the empty condo fields, without overwriting anything you already entered.
- •Buyer agents asking for the documents: a request page lets them leave their name, brokerage and email and receive a 24-hour download link, with the requests in an access log, so the reserve fund study and budget reach them without an email chain.
The Status Certificate tab is included on every plan.
Robert Cekan is a REALTOR® in Hamilton, Ontario, the publisher of Urbanicity Hamilton, and the founder of Listing Launchpad. The playbooks here come from running real listings.