The contribution collected from unit owners to cover the maintenance, management and operating expenses of a building's common areas.
All termsThe maintenance fee is the contribution collected from unit owners to cover the upkeep, repair, management and operating costs of common areas in apartment buildings and housing estates. Caretaker and security services, lift maintenance, common lighting and management costs are typical items.
Contribution ratios are set by statute: some expenses are shared equally, others in proportion to land shares, and the management plan may adopt different rules. Not using the unit or a particular common service does not, as a rule, remove the duty to pay. Tenants may also be held liable for the expense share of the unit they occupy, with payments deducted from their rent.
Enforcement proceedings may be brought against defaulting owners, and a monthly default indemnity at the statutory rate accrues on late payments. Persistent non-payment can ultimately expose the owner to severe sanctions, including a claim by the other owners for transfer of the unit's ownership.
The glossary is provided for information only and does not constitute legal advice. What a term means in a specific case depends on the details of the file.