Condo Fees: Who Pays What and What They Cover

Do you receive your monthly statement and wonder exactly what your condo fees are used for? In a divided co-ownership, the answer depends on the nature of the expenses, your declaration of co-ownership (DCV) and the allocation established by the board of directors, in accordance with the Civil Code of Quebec.

Understanding “condo fees who pays what” helps you budget, avoid misunderstandings with neighbours and ask the right questions at the annual general meeting. This article clearly explains what falls under common expenses, what remains the co-owner’s responsibility and how the board of directors establishes each co-owner’s share, the budget and special assessments.

Throughout the following sections, you will also see how the contingency fund, self-insurance fund, maintenance logbook and EUC fit together to protect the common asset, and how to read your financial statements to track changes in expenses.

Condo Fees: Who Pays What, at a Glance

• Common portions: maintenance, repairs and the syndicate’s insurance are paid collectively through monthly contributions (see s. 1064 C.C.Q.).
• Private portions: the interior of the unit and your improvements are generally your responsibility, except where the DCV provides otherwise or a particular responsibility applies.
• Dedicated funds: part of your contributions goes toward the contingency fund and self-insurance fund, in accordance with legal requirements and the studies completed.
• Decisions and monitoring: the board of directors administers the syndicate and proposes a budget, while the annual general meeting adopts major expenses and special assessments in accordance with the voting thresholds and rules set out in the DCV and the C.C.Q.

To confirm the legal principles, consult the Civil Code of Quebec, particularly the provisions on contributions to common expenses and the administration of the syndicate; see LégisQuébec.

What Your Monthly Contributions Cover (Common Expenses)

Monthly contributions fund the syndicate’s day-to-day operations and the maintenance of the common portions. The DCV identifies the common portions, such as the structure, roof, facades, elevators, corridors, lobbies, common parking areas and mechanical systems. As a general rule, your contributions cover:

• Insurance for the syndicate’s common portions and building, including certain deductibles and coverage required under the C.C.Q.
• Energy and services for the common portions: electricity for common areas and heating for common spaces, where applicable.
• Regular maintenance: cleaning corridors, common windows, lawn care, landscaping, snow removal and waste collection.
• Preventive and corrective maintenance: inspection of facades and balconies, elevator maintenance, security and fire-protection systems, ventilation and common plumbing.
• Professional fees: accounting, auditing, notarial services as needed, engineering for the contingency fund study (EFP) and architects for the EUC and maintenance logbook.
• Administrative expenses: bank fees, software, communications, notices of meeting and annual general meeting minutes, and the syndicate’s register.
• Mandatory contributions: payments into the contingency fund and self-insurance fund, based on the EFP and the syndicate’s policy.

The Regroupement des gestionnaires et copropriétaires du Québec (RGCQ) offers best practices for budget planning and maintenance: rgcq.org. The obligations relating to the maintenance logbook and associated studies arise, among other things, from legislative amendments adopted in Quebec; refer to LégisQuébec for the applicable texts.

To see how structured management makes this work easier, visit our Services pages: Financial Management, Administrative Management and Operations Management.

What Is Not Covered: Private Expenses and Special Circumstances

Several expenses are the co-owner’s responsibility because they relate to private portions or personal improvements. Generally, you are responsible for:

• The interior of the unit: finishes, flooring, cabinets, countertops, paint, interior doors and appliances.
• Private equipment: a water heater located in the unit, a wall-mounted air conditioner, unless it is part of a common system, a private intercom and private light fixtures.
• Minor repairs to private portions: faucets, traps within the unit and privatized electrical devices.
• Co-owner’s insurance: home insurance covering improvements and civil liability for your fraction.

Common special circumstances include:

• Water damage: depending on the source of the loss, the DCV and the law, certain costs, deductibles or repairs to common portions may be allocated differently. Check the syndicate’s insurance, your policy and the clauses concerning improvements.
• Balconies and windows: their status—common portions, common portions for restricted use or private portions—depends on the DCV. Costs are allocated according to that status.
• Parking spaces and storage areas: the same logic applies, depending on whether they are common portions for restricted use or private lots.

For any sale or promise to purchase, the OACIQ emphasizes the importance of the documents: the seller’s declaration for divided co-ownership, financial statements and information about the syndicate: oaciq.com.

Who Pays What: Practical Examples (Summary Table)

Note: the DCV prevails in determining whether something is “common,” “common for restricted use” or “private.” If in doubt, ask the board of directors or a legal adviser for an interpretation.

Allocation and Calculation of Common Expenses

The principle is simple: each co-owner contributes to the common expenses according to the relative value of their fraction, unless the DCV provides otherwise (see s. 1064 C.C.Q.). Relative value reflects the proportion of the rights and obligations attached to each fraction.

The board of directors prepares an annual budget covering operations, maintenance and contributions to the funds. The annual general meeting adopts the budget and, where necessary, authorizes major work and special assessments in accordance with the voting rules in the DCV and the Civil Code. Periodic monitoring through financial statements promotes transparency: budget-versus-actual comparisons, fund balances and co-owner debts.

During the year, if an unexpected expense arises, such as a major elevator breakdown, the board of directors may propose a special assessment. The required vote varies according to the nature of the work and the DCV. The written rationale, payment schedule and impact on the contingency fund must be clearly presented in the notice of meeting and recorded in the minutes.

Share and Relative Value

• Determined when the divided co-ownership is created, the shares are recorded in the DCV and reflect the relative value of each fraction.
• Common expenses are allocated according to these shares, unless a different mechanism is provided, such as allocation based on use for certain equipment or sections.
• Changes to shares and corrections require controlled legal procedures. Refer to the Civil Code and a notary if necessary.

Mixed Co-ownerships: Residential, Commercial and Taxes

In a mixed-use building, the allocation may take into account the services used by each section, such as a commercial elevator or indoor parking. Certain expenses may be allocated differently if the DCV provides for it. In addition, for commercial spaces, GST/QST may apply to certain services; check the specific tax situation with Revenu Quebec: revenuquebec.ca.

Contingency Fund and Self-Insurance Fund: Roles and Funding

The contingency fund is used for major repairs and the replacement of common portions, including the roof, facades, common windows and mechanical systems. Following recent reforms, it must be funded based on a contingency fund study (EFP) prepared by a qualified professional and updated periodically. The study takes into account the maintenance logbook/EUC, the remaining service life of components and inflation.

• Contingency fund study (EFP): projects expenses over 25-30 years typically, with recommendations for annual contributions to reach the targets.
• Maintenance logbook/EUC: inventories the components, establishes maintenance intervals, assigns responsibilities—common versus private—and supports planning.
• Annual budget: includes the recommended contribution to the fund to avoid chronic underfunding and sudden increases in special assessments.

The separate self-insurance fund is intended, among other things, to cover deductibles and certain insurance expenses of the syndicate. It reduces the financial shock of a loss and stabilizes expenses when covered events occur.

For the legal basis of the funds, see the Civil Code of Quebec and recent co-ownership legislation on LégisQuébec: Code civil du Québec. The RGCQ also publishes guides on implementing insurance and prevention policies: rgcq.org.

Insurance: Syndicate vs. Co-owner

The syndicate’s insurance covers the building and common portions as required under the C.C.Q., while the co-owner’s insurance covers their improvements and liability. Here are a few guidelines on “who pays what” for insurance:

• Damage to a common portion: the repair is the syndicate’s responsibility; the costs may be paid from the operating budget, self-insurance fund or the syndicate’s insurer, depending on the severity and policy.
• Damage within a private portion: repair of the private element is the co-owner’s responsibility. If the loss also affects common portions, the common portion follows the approach described above.
• Deductible and responsibility: the insurance policy and DCV specify how a deductible may be charged when fault or a private source is established.

Strict preventive maintenance and the use of licensed contractors reduce the risk of incidents and higher premiums. To verify contractor licences for elevators, building mechanics and facades, consult the RBQ: rbq.gouv.qc.ca.

How to Read Your Budget and Financial Statements—and Ask the Right Questions

Your annual budget and financial statements are your best tools for understanding and planning your condo fees:

• Budget: compare operating items—insurance, energy, maintenance and services—with contributions to the funds—the contingency fund and self-insurance fund. Check that they are consistent with the EFP and maintenance logbook.
• Financial statements: review the contingency fund balance, completed capital assets, budget-to-actual variances and accounts receivable—arrears. Ask the board of directors for explanations of significant changes.
• Annual general meeting minutes and notices of meeting: read the resolutions concerning fee increases, renewed contracts, major projects and special assessments.
• Communication: prioritize clear, periodic reports. A financial platform and approval procedures improve transparency.

For useful tools and templates, browse our Blog and learn more about who we are. If your syndicate is considering professional management, see our packages.

FAQ — Condo Fees: Who Pays What

Q1. Do condo fees include electricity for my unit?

Usually not for residential units: electricity for a private portion is the co-owner’s responsibility. Common areas, on the other hand, are paid for collectively.

Q2. Who pays to replace a water heater?

If it is located in the unit and identified as private by the DCV, the co-owner is generally responsible for replacement. Many syndicates impose a maximum age and keep a water-heater register to reduce losses.

Q3. Is a special assessment legal?

Yes, if it is adopted in accordance with the DCV and the C.C.Q., with clear notice and a resolution properly recorded in the minutes. It is often used to fund a deficit, a major unexpected expense or a project planned through the EFP.

Q4. Are condo fees subject to GST/QST?

For purely residential buildings, contributions are generally not taxable. In a mixed-use or commercial context, exceptions apply. Check the exact situation with Revenu Quebec: revenuquebec.ca.

Q5. Are windows and balconies the syndicate’s responsibility or mine?

It depends on the DCV: common portions, common portions for restricted use or private portions. The answer follows from that status; always confirm your DCV.

Useful official resources:

• Civil Code of Quebec (C.C.Q.): legisquebec.gouv.qc.ca
• RGCQ — Guides and resources: rgcq.org
• RBQ — Verify a contractor’s licence: rbq.gouv.qc.ca
• Revenu Quebec — Tax information: revenuquebec.ca
• OACIQ — Information for co-ownership sellers and buyers: oaciq.com

This article provides general information and does not constitute legal advice. Consult a lawyer or notary regarding your situation.

This article provides general information and is not a substitute for advice from a tax specialist or accountant. Refer to Revenu Quebec and the CRA for the exact rules.

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