What condo fees cover — and the special-assessment risk
Monthly condo fees (common expenses) typically cover building insurance, maintenance of the common elements, snow removal, landscaping, some utilities, and a legally required contribution to the reserve fund. Fees vary widely from building to building, driven by amenities, age, size, and how well the reserve is funded — so compare the specific unit rather than assuming an average.
When the reserve fund cannot cover a major repair, the corporation can levy a one-time special assessment on owners. A well-funded reserve is your best protection against that, which is why the next two sections matter so much.
The status certificate: your most important document
The status certificate is a disclosure package the condo corporation must provide, describing its financial health and the status of the specific unit. Under Ontario’s Condominium Act, 1998 the corporation cannot charge more than $100 (including taxes) for it, and must deliver it within 10 days of your request and payment.
- The current declaration, by-laws, and rules.
- This year’s budget, the last audited financial statements, and the auditor’s report.
- A statement on the most recent reserve fund study and the state of the reserve fund.
- The unit’s common expenses and whether it is in arrears.
- Any special assessments charged to the unit, and the reason.
- Any outstanding legal judgments against the corporation, or ongoing litigation.
The reserve fund and reserve fund study
The reserve fund is the corporation’s savings for major repairs and replacements — roofs, elevators, parking structures, boilers. A reserve fund study projects those costs 30 or more years out and recommends annual contributions. A corporation completes a comprehensive study within its first year and updates it at least every three years.
A healthy building contributes at or above the study’s recommended level. An underfunded reserve is a strong warning sign of future special assessments or steep fee increases — worth catching before you buy, not after.
Who regulates condos in Ontario
- The Condominium Authority of Ontario (CAO) supports owners and communities with information, mandatory director training, and dispute resolution through the Condominium Authority Tribunal.
- The Condominium Management Regulatory Authority of Ontario (CMRAO) licenses and regulates the condo managers and management companies that run the buildings.
Your before-you-buy checklist
TeamBeckett writes condo offers with the status-certificate condition built in, and works with local lawyers who read these packages for a living.
- Make your offer conditional on a satisfactory status-certificate review by your lawyer.
- Check the reserve fund against the reserve fund study’s recommendations.
- Look at the fee history and any approved or anticipated increases or special assessments.
- Read the rules on pets, rentals, and alterations — they are binding.
- Confirm what is a common element versus your unit, and any exclusive-use areas (parking, locker, balcony).
- Check for any litigation or judgments against the corporation.
Frequently asked questions
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Sources
- Status certificates — contents, $100 cap, 10-day rule (Condominium Authority of Ontario)
- Reserve funds and reserve fund studies (Condominium Authority of Ontario)
- Condominium Act, 1998, S.O. 1998, c. 19 (Government of Ontario)
- Licensing of condo managers (Condominium Management Regulatory Authority of Ontario)