HOW ARE CONDO MONTHLY FEES DETERMINED?

DEAR BOB: My parents are closing on the purchase of a condominium next month. I think they will be paying too high a monthly fee relative to other units in the complex with larger square footage. Are condo monthly fees based on square footage or the price paid for the condo? --Sue S.

DEAR SUE: Condominium homeowner association monthly fees are determined by the method specified in the conditions, covenants, and restrictions (CC&Rs). Many condo CC&Rs set the monthly fees based on unit square footage. Others use the number of bedrooms. Still others use a flat fee system.

I have never heard of monthly fee assessments based on the purchase price of the individual condo unit. Please read the CC&Rs (or ask the homeowner association treasurer how the monthly fees as assessed).

(For more information on Bob Bruss publications, visit his
Real Estate Center).

Copyright 2006 Inman News