Just because you’ve bought one of those condominiums for sale in the Scout area doesn’t mean you won’t have to spend any more on it. In fact, there are tons of expenditures that come with buying a condo unit, and one of these is the association fee. So in case you haven’t got a clue on what that is, here are the basic information about this payment that you need to know.
What exactly is it?
You’ve probably already heard of homeowner’s association fees and you might even know somebody who pays them. Just so you’ll know, in homeowner’s association fees, you’re paying solely for your house and lot until the property line. With condominiums, however, you’re not only paying for your own unit but for partial ownership of the condo building and the grounds it stands on. Condo association fees are monthly dues to be paid by the unit owner to the developer for the general upkeep of the condominium building. It’s mandatory to join the association. You start paying the fees the moment the deed of sale is signed, the unit is turned over, and the condominium’s title is formally under the name of the buyer. Keep in mind that you’re also required to attend the condominium association meetings.
To whom must you pay?
Each month, you pay your condo association dues to the property management office. They’re in charge of collecting your condo association fee and any other payables to the developer. As their office name implies, they’re also in charge of managing your building as well as the basic services that every condo development has, including security, janitorial services, maintenance staff and whatever else is needed to keep the building in tip top shape.
How much is the fee?
On how much the condo association fee will be rests on the developer and the project. It all depends on how much they will price the association fee per square meter without the VAT. Take note that the fee is based on how large or how small your unit is. So if you have a 20 square-meter unit, your fee will be larger than that of a 10 square-meter one. If you have a two-bedroom condo unit, your condo association fee will definitely be larger than that of a studio unit. Also take note of the amenities included. If the project has numerous amenities, chances are the association fee will be larger than a project with just a few ones.
What is the coverage?
Among the primary reasons why homeowners prefer a condo unit over a regular house is because of the amenities included. These amenities include use of facilities like swimming pools and gyms, promos in the in-house spas, and other venues such as churches and clubs. By paying your condo association fees, you get to enjoy all these things! Aside from amenities, condo association fees also cover building maintenance, repairs, security, utility expenses and other miscellaneous expenditures.
What are the penalties?
In case you’re unable to pay your dues on time, there are consequences to pay—literally! A penalty interest charge (the amount depending on the association regulations) will be applied on your overall fee. But it doesn’t end there; you’ll also have to face other penalties like the removal of amenities privilege and basic utilities. However, once you’ve paid the amount required, you will be removed from the list of delinquents and your privileges given back to you.
Like it or not, you need to pay your dues. Set aside a part of your monthly budget especially for your condominium association fee. That way, you’ll be able to maximize the comforts of your new home.