When buying a condo in Pandan Indah or Taman Desa, two important elements must be taken into account: the condo fees and the contingency fund. Here are six things to know about them to preserve and protect your real estate investment.
Use of the Condo fees
Condo fees for co-owners of the same building are therefore not always the same amount. As you choose a pandan indah condominium you can expect the best quality now.
Also called condo fees, condo fees are billed to co-owners on a monthly basis. They are used to cover the expenses necessary for the regular maintenance of the common parts of the building: washing windows, maintenance of the swimming pool and the lawn, snow removal, painting of the stairwell, small repairs, etc.
They are also used to pay for major work, such as replacing the roof or the heating system. For this type of work, the syndicate of co-owners must set up a contingency fund into which part of the condo fees is paid.
Condo fees are not optional: according to the Civil Code of Quebec, all co-owners must contribute to the building’s maintenance expenses. Moreover, if a co-owner is in default of payment, he can be sued. Ultimately, the union could even obtain the right to sell the bad payer’s condo to recover its due.
How are condo fees calculated?
The calculation is made according to the relative value of the portion of the building owned by each co-owner. Thus, if the value of your condo equals 7% of the value of the building, you will pay 7% of common expenses.
- Some developers of new condos tend to minimize condo fees to attract buyers. In the long run, this is not sustainable. One day or another, these costs will have to be significantly increased to keep the building in good repair.
- In the case of an existing building, costs that are too low can hide a lack of preventive maintenance and the postponement of important work. When a building is neglected, it loses value. All the co-owners will come out the losers.
Remember that as a co-owner, you are not only responsible for the four walls of your condo. You share the responsibility for the building with the other co-owners.
The value of each unit is specified in the declaration of co-ownership in the form of a percentage or a fraction. To determine it, various factors are taken into account, including the size of the unit and its location in the building. Unsurprisingly, a 1000 square foot condo on the top floor that overlooks a park is worth more than a condo of the same size, but located on the ground floor with a view of the parking lot.
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