Seller's Guide
The Real Cost of Selling a House in Quebec
Most sellers calculate their net proceeds like this: sale price, minus the mortgage balance, minus broker …
The condo looks affordable. The price is right. The monthly fee is $380 - manageable.
Ten years later: the fee is $620, there’s been a special assessment for $18,000, and you’re wondering where your returns went.
None of this is an argument against condos. They are the right choice for many buyers. But there’s a conversation about condo fees that almost nobody has before a purchase, and it needs to happen.
What Condo Fees Actually Cover
Monthly condo fees (frais de copropriété in Quebec) typically cover:
- Building insurance (the structure, not your unit contents)
- Common area maintenance and cleaning
- Reserve fund contributions
- In some buildings: heat, hot water, or parking
- Management company fees
The split between day-to-day expenses and reserve fund contribution varies dramatically between buildings. This split is one of the most important pieces of information you can request before buying.
The Reserve Fund: The Number That Tells Everything
Every Quebec condo corporation is legally required to maintain a reserve fund to cover future major repairs: roof replacement, elevator modernization, exterior cladding, parking structure repair. The question is whether the fund is adequately capitalized.
A reserve fund study projects the future major expenses of the building over 30-40 years and calculates how much needs to be set aside annually to meet those obligations. When the fund is underfunded - contributions falling short of projected needs - there are two possible outcomes: fees increase significantly, or a special assessment is issued.
Before buying any condo, ask for:
- The most recent reserve fund study (should be dated within the last 3-5 years)
- The current reserve fund balance
- The percentage of funding (the fund balance vs. what the study says it should be)
A building funding below 70% of its projected requirement is a risk signal. Below 50% is a serious red flag.
Special Assessments: The Unexpected Bill
When a major repair is required and the reserve fund doesn’t cover it, the board issues a special assessment - a lump sum charge to all unit owners, proportional to their unit’s share of the building. These can range from a few thousand dollars to $40,000+ per unit.
Special assessments are not announced far in advance. You can receive 30-60 days notice of a $20,000 bill with no prior warning if the building has been mismanaged or the reserve fund has been chronically underfunded.
The mitigation: read the minutes of condo board meetings for the past 3 years before purchasing. Issues with the building, ongoing disputes, deferred maintenance, and discussions of potential assessments will often appear in these documents. Sellers are legally required to provide them.
How Fees Compound Over Time
A $400/month fee growing at 5% per year reaches $652/month in 10 years and $1,062/month in 20 years. That growth erodes your effective rental yield if you’re holding the property as an investment, or increases your true ownership cost if you’re living in it.
Any long-term cash flow analysis should use a projected fee growth rate of 4-6% per year. Many buyers model static fees. That’s optimistic to the point of inaccuracy.
When a Condo Still Makes Sense
All of this doesn’t make condos bad investments. It makes them investments that require careful due diligence. A well-managed building with a healthy reserve fund, a competent board, and fees that reflect genuine costs rather than artificial suppression can be an excellent asset.
The key due diligence items:
- Reserve fund study and current balance
- Last 3 years of board meeting minutes
- Current financial statements
- Outstanding legal proceedings against the corporation
- Any pending or recently completed major repairs
This information is legally available to prospective buyers through their broker or notary. Always review it. Always.
Looking at a specific condo? Request a review of the building’s financials before you commit.
Georges Matar
Residential Real Estate Broker · RE/MAX DU CARTIER INC.
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