Condo Fee and Common Expense Adjustments at Closing in Ontario

If you are buying or selling a condominium in Ontario, the monthly common expense fee (also called the maintenance fee) appears on the statement of adjustments as a closing credit. The logic is simple — fees are typically paid in advance for the month — but the details matter. Getting this adjustment wrong can lead to disputes between the parties and confusion about the final closing balance.

This article explains how condo fee adjustments at closing work in Ontario, what else may appear on a condo closing statement, and how the status certificate ties into the process.

How Common Expense Fees Are Billed

Condominium corporations in Ontario typically bill common expense fees monthly, in advance. This means the owner pays on the first (or another set date) for the right to use the common areas and receive services for that entire month.

This prepayment structure creates a built-in adjustment on every condo closing: the seller has paid for a full month, but will be handing over the unit partway through. The unused days belong to the buyer, who will be getting the benefit of the paid month without having paid for it.

Calculating the Per-Diem Adjustment

The adjustment is straightforward:

Monthly fee ÷ number of days in the month × number of days remaining after closing = seller credit

Example: Closing is on June 10. Monthly fee is $600. June has 30 days. Remaining days = 20 (June 11 through June 30).

$600 ÷ 30 × 20 = $400 seller credit

This $400 appears on the statement of adjustments as a credit to the seller, which increases the amount the buyer must pay at closing.

What Amount Is Used for the Adjustment?

The fee used is the amount in effect at the time of closing, not the fee that was in place when the agreement was signed. Condo corporation fees can increase during the period between signing and closing (many corporations increase fees annually). The status certificate will show the current monthly fee, and the adjustment is based on that figure.

This is one reason why your lawyer must review the status certificate carefully and confirm the current fee before preparing the statement of adjustments.

Special Assessments: A Separate Concern

Occasionally, a condo corporation does not have enough money in its reserve fund (the pool set aside for major repairs) and must levy a special assessment — a one-time or periodic extra charge to all unit owners.

Whether a special assessment is the buyer's or seller's responsibility depends on:

1. When it was levied — if it was declared and invoiced before the closing date, it is generally the seller's obligation.
2. When it is payable — if it was declared before closing but is payable after closing, the status certificate should disclose it and the parties must agree in the agreement of purchase and sale who bears it.
3. Whether the agreement addresses it — standard agreements sometimes have specific language about special assessments; review this with your lawyer.

As of writing, the handling of special assessments is a common point of dispute and negotiation in condo purchases. Always ask your lawyer to flag any disclosed assessments in the status certificate.

Reserve Fund Status and Underfunding

The reserve fund is the condo corporation's savings account for future major repairs (roof replacement, elevator overhaul, parking garage repair, etc.). A well-funded reserve fund is a sign of a healthy condo corporation.

If the reserve fund is underfunded — meaning the corporation has less than what its reserve fund study says it should have — it signals a risk of future special assessments. This does not create an immediate adjustment on the closing statement, but it is a major factor in the buyer's decision about whether to proceed.

Your lawyer's review of the status certificate will flag the reserve fund status. For buyers particularly concerned about financial risk, a review by an accountant or condo specialist may be warranted.

Other Possible Condo Closing Adjustments

Beyond the monthly fee, a condo closing statement may include:

Parking and locker fees

Some condo corporations charge separate monthly fees for parking and storage lockers. These are adjusted the same way as the main common expense fee.

Utilities included in common fees

If the condo corporation includes heat, hydro, or water in the common expense fees (common in older buildings), there is no separate utility adjustment — it is already captured in the fee proration.

Metered utilities

If utilities are individually metered (common in newer buildings), the adjustment may appear separately. In many cases, sellers are required to provide a final meter read and settle their own accounts, and no utility adjustment appears on the statement.

HST on new condo purchases

If you are buying a brand-new condo directly from the developer, HST applies to the purchase price. This is a significant additional cost (and there is a partial federal and Ontario rebate available, subject to qualification). This is handled separately from the condo fee adjustment but appears on the closing statement. As of writing, verify HST rebate thresholds and eligibility with your lawyer.

The Status Certificate and Timing

To prepare an accurate closing statement, the seller's lawyer needs current information from the condo corporation. This comes from the status certificate — a package of documents the condo corporation must provide on request (within a set number of days under the Condominium Act, as of writing — verify current timelines).

The status certificate confirms:

• Current monthly common expense fees
• Any amounts in arrears for the unit being sold (arrears are the seller's responsibility to clear before or at closing)
• Pending or approved special assessments
• The state of the reserve fund
• Any litigation involving the corporation

If the seller is in arrears of common expense fees, those arrears appear on the closing statement as a debit to the seller (effectively reducing the seller's net proceeds).

Frequently asked questions