Q: Why do I have condo fees and where do they go?

A: This is a very common question from anyone considering purchasing a condominium unit. Some general background on condominium ownership is helpful in answering this one.

When you purchase condominium property you're buying two things
- The physical condo unit
- Shares in the condominium corporation

These shares are called 'Unit Factor' and every condo in Alberta has a total unit factor of 10,000. For example if your unit has a 'Unit Factor' of 2,500 then you own 25% of the shares of the condominium corporation.

Condo fees are paid to this corporation, or commonly to a management company hired by the condominium board to oversee the maintenance and repair of the buildings, ground and facilities. This money is paid to the corporation that is owned by the condominium unit owners for the benefit of the owners. The funds go towards a variety of utility, maintenance, insurance and management items that vary from one condominium to another. Some common items include:
- insurance on common property
- exterior maintenance and repair
- landscaping and snow removal services
- reserve fund contributions
- maintenance and repair of amenities associated with the condominium (exercise facilities, swimming pools etc.)

Many condominium corporations are setup to pay many of the utilities servicing the units from the corporation. This is especially common in apartment style condos where the fees often cover:
- heat
- water/sewer
- electricity

Remember, the condominium fees (or contributions) are paid to a corporation owned by the unit owners and they go towards services that benefit the owners. Every condominium is different, has different fee amounts and covers different items. The setup and financial condition of the condominium corpopration is very important so be sure to investigate these areas on any condo you consider purchasing.

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