John W David.com
Condo Fees
Condominiums, Special Assessments, Monthly

What are condo fees and why pay condo fees when you can buy a regular home with no fees at all? 

The fact is that condo fees are often just the pay-me-in-advance version of what happens to any home when it ages and needs both repair and upgrading and almost always when there are no funds available to do it right now or to do it right. 

Most condo fees cover the exterior of the building, water, property management, and building insurance. Some condos have a limited role in the building exterior. So, that's something that you have to get clearly defined first then take it to a contractor to see if you are protected. 

Condo fees are also determined by what you want tossed into the mix. Some people want the bare essentials for example in the lobby. Others, like me, like all marble and spotlessly cleaned and polished lobby accessories, carefully manicured lawns and gardens, and best property maintenance. Find out what you are paying for in the common areas. And, know what those common areas mean in terms of not just cleanliness but also security.

With so many people buying at sub-prime or high ratio mortgage rates, any shift in condo fees, especially in special assessments, can put condo ownership in serious jeopardy after moving in. And, that's what is now happening in growing numbers.

For Special Assessments, look at the roof, look at the windows. Physically, look at these things. If they need work, is the money already there in constant growth to the day when these repairs will be done and the money is available? Or, is there going to be a shortfall of a part or all of it and a Special Assessment is required? 

Pay a good building inspector to have a careful look if you don't feel you have the competency in these matters. They do!

Or, maybe the roof and windows have already been done. A very good question to ask is: "Was a Special Assessment needed to get them done?" That will tell you how the condo corporation handles its money as to operational necessity alone or operational and capital consistent with current and projected needs. Whatever they did once, they'll certainly do again. 

Nothing is ever perfect, however, when working for a client, a good real estate representative must dig deep and get down and dirty for that client to keep him/her from what is becoming a growing trend of misery among condo owners, especially first time buyers and those on fixed incomes. 

In the Ottawa area, not sure what to do or how to protect yourself in a condo transaction, call me. If there's something hiding and waiting to bite you, I will find it! Then, the building inspector and lawyers can do their thing.