All About Co-ownership Fees

When searching for a co-ownership, you must understand the co-ownership fees that come with such a home. Unsurprisingly, the co-ownership field has a complex and uncommon vocabulary, which is why you should find out more on the subject before buying a unit in a co-ownership.

This article is about co-ownership fees and demystifies various related concepts.

What Are Co-ownership Fees?

Co-ownership fees are billed to every co-owner monthly. They are used to pay for the maintenance of common portions. These expenses include snow removal, grass clipping, pool maintenance, etc.

They are also used to pay for major repairs on the property, such as the replacement of the roofing and the heating system, etc. To plan for such repairs, the syndicate of co-ownership creates a contingency fund made up of part of the co-ownership fees.

Ultimately, the co-ownership fees are used to pay for maintenance and management expenses for the common portions of the property, and to create a contingency fund and an insurance fund.

*Please note: the co-ownership fees are not optional. According to the Civil Code of Québec, every co-owner must contribute to the payment of expenses related to the property’s maintenance.

What Is the Contingency Fund?

The contigency fund is used to pay for major repairs and for replacements in the common portions which cannot be resolved by simple maintenance. This fund belongs to the board of directors but can be used after consulting the general meeting of co-owners to determine the amount to allocate.

What Is the Insurance Fund?

The syndicate of co-owners uses the self-insurance fund to pay for the insurance policy. This fund can also be used to repair damaged property when the contingency fund or the insurance cannot provide the funds. The board of directors, after consulting the general meeting of co-owners, determines the amount to allocate to the self-insurance fund.

How Are These Fees Calculated?

The co-ownership fees are based on the relative value of the portion of the property owned by each co-owner. Thus, if your unit is equal to 10% of the property’s value, you will pay for 10% of the common charges. The value of each unit is in the declaration of co-ownership in the form of a percentage or a fraction. To define these values, many characteristics are taken into account including the dimensions of the unit and its location.