Key takeaways
- Condo fees are separate from your mortgage, property taxes and personal insurance.
- A lower monthly fee does not necessarily mean a less expensive or financially healthier building.
- Fees can rise, and special assessments or chargebacks may create additional costs.
- Review the status certificate, budget, financial statements and reserve-fund information before committing.
On this page
1. What am I paying for each month?
2. How is my share calculated?
3. What is the reserve-fund contribution for?
4. Can my fees increase after I buy?
5. What are special assessments and chargebacks?
6. What should I review before buying?
What am I paying for each month?
Common expenses pay the corporation’s operating costs and reserve-fund contributions. Depending on the property, they may include cleaning, management, insurance, landscaping, snow removal, security, elevators and shared facilities. Some buildings include certain utilities; others meter and bill them separately. [1]
The fee is therefore part of the cost of owning your unit, even though you do not directly choose every supplier or repair. Read the actual inclusion list rather than assume that “maintenance included” covers everything inside and outside the unit.
Condominium townhouses and other low-rise properties can have fees too. The presence or absence of a concierge or swimming pool does not determine whether a property is a condominium.
How is my share calculated?
The condominium declaration sets the proportion of common expenses allocated to each unit. The corporation’s budget and that proportion determine the contribution. Unit size can be relevant, but the governing percentage is what matters. [1, 2]
For example, if the applicable annual budget were $1.2 million and a unit’s contribution were 0.5%, that unit’s annual contribution would be $6,000, or $500 a month. This is a simple illustration; parking and locker units or other arrangements can affect an actual account.
You generally cannot reduce your fee because you do not use an amenity. The obligation follows the unit’s allocation, subject to the statute and governing documents.
What is the reserve-fund contribution for?
The reserve fund pays for major repairs and replacements of the corporation’s common elements and assets. It is distinct from the operating money used for routine expenses. Periodic reserve-fund studies help assess future work and whether the funding plan is adequate. [3]
A building with aging elevators or a roof approaching replacement may face significant future costs. A healthy-looking bank balance alone does not tell you whether those costs are adequately funded. The study, planned contributions and expected work need to be considered together.
Money in the fund belongs to the corporation. An owner does not generally withdraw a personal share when selling; the buyer acquires the unit with its ongoing obligations and the benefit of the corporation’s assets.
Can my fees increase after I buy?
Yes. Insurance premiums, labour, utilities, repair needs and reserve-fund requirements can change. The corporation sets budgets through its governance process, and common expenses can rise. A fee shown in a listing is a current figure, not a guarantee for your ownership period. [1]
When comparing two properties, ask what each fee includes and what costs sit outside it. A $450 fee excluding utilities is not directly comparable with a $600 fee covering several utilities. Also consider the repair plan and any known upcoming increase.
Leave room in your monthly budget for changes. Buying at the limit of what you can afford can become difficult if fees rise along with mortgage or other household costs.
What are special assessments and chargebacks?
A special assessment is an additional contribution imposed to cover a shortfall or expense beyond the money otherwise available. It can be substantial and may be payable at once or in instalments. A chargeback is a cost added to a particular unit’s account where the law and governing documents permit it. [4]
These are different from the regular fee. Ask your lawyer about any existing assessment, proposed assessment or arrears shown in the status certificate. If a unit is being sold, the agreement must be reviewed to determine how an assessment is allocated between buyer and seller.
Unpaid common expenses can result in interest, legal costs and a condominium lien. Do not withhold fees as a way to protest a management or maintenance dispute; get advice about the proper route for that concern. [2]
What should I review before buying?
Have your lawyer review a current status certificate and the accompanying documents. Pay attention to the unit’s fee, arrears, assessments, reserve-fund position, insurance and disclosed litigation. [5]
Ask your agent to obtain the most recent fee information and tell your lender the correct amount. Keep copies of any notice of increase or assessment received between the offer and closing. Your lawyer can advise whether updated information or an adjustment is needed.
The goal is to understand the full ownership cost and the corporation’s known obligations, rather than select a unit solely because its advertised fee is low.
About the author — Gathyayini Manoharan
Gathyayini Manoharan is a lawyer licensed by the Law Society of Ontario (LSO #75591T, licensed since 2018) and a Practice Lead at iClosed. Her practice is Ontario residential real estate, and she works on purchase, sale and refinance files from retainer through to reporting. Her Law Society record can be verified at https://lsodirectory.lso.ca/en-US/licensee-detail/?lawsocietynumber=75591T. This article is general information about Ontario law and practice, not legal advice. It does not create a lawyer-client relationship. For advice on your own transaction, speak with a licensed Ontario real estate lawyer.
Sources
1. Condominium Authority of Ontario — Common expenses fees. — https://www.condoauthorityontario.ca/before-you-buy-or-rent-a-condo/fees-and-finances/common-expenses/
2. Condominium Act 1998 — sections 84 to 85 and 93 to 94. — https://www.ontario.ca/laws/statute/98c19
3. Condominium Authority of Ontario — Reserve funds. — https://www.condoauthorityontario.ca/before-you-buy-or-rent-a-condo/how-condos-work/condo-operations/reserve-funds/
4. Condominium Authority of Ontario — Special assessments. — https://www.condoauthorityontario.ca/before-you-buy-or-rent-a-condo/fees-and-finances/special-assessments/
5. Condominium Authority of Ontario — Resale condos. — https://www.condoauthorityontario.ca/before-you-buy-or-rent-a-condo/buying-a-condo/resale-condos/
This article provides general information about Ontario law and closing practice as of October 26, 2026. It is not legal or tax advice and does not create a lawyer-client relationship. Your agreement of purchase and sale, your lender’s instructions and your own circumstances control what applies to you. Rates, thresholds and rules change — confirm current figures before relying on them.