Ontario | Fees and Reserve Fund
Ontario Condo Fees, the Reserve Fund Study and Liens
Ontario condo fees are each owner's share of the corporation's common expenses, in the proportions the declaration sets. Part of every payment goes to the reserve fund for major repairs, which the Act requires in every corporation. When an owner stops paying, the corporation can register a lien on the unit that ranks ahead of the mortgage.
The short answer
- Owners pay common expenses "in the proportions specified in the declaration" (s. 84(1)). An owner cannot stop paying because of a claim against the corporation.
- Every corporation must keep a reserve fund, used only for major repair and replacement of the common elements and assets.
- Before the first study, reserve contributions must be at least 10% of the rest of the budget.
- A reserve fund study is due within a year after registration and every three years after, with no exemption for small corporations.
- A lien for unpaid fees must be registered within three months, after 10 days' written notice to the owner.
How fees are set
The board sets the budget and may make by-laws on assessing and collecting contributions (s. 56(1)(g)). We found no section of the Act that requires owners to approve the budget, and no cap on how much fees may rise. The budget and any amendments go to owners in the periodic information certificate, with any expected surplus or deficit. Borrowing for spending outside the budget needs a by-law (s. 56(3)).
The reserve fund study
- First study: a comprehensive study within the year after the declaration and description are registered (s. 94(4); O. Reg. 48/01 s. 31(2)).
- Then every three years, rotating between an update without a site inspection and an update with one.
- Contents: every item needing major repair or replacement within at least 30 years and costing at least $500, and a funding plan over at least 30 years.
- Who may do it: listed professionals such as engineers, architects, AACI appraisers and certified reserve planners. They cannot be an owner, director, officer or manager of the corporation, and must carry errors and omissions insurance of at least $1 million per claim.
- Within 120 days of receiving the study, the board proposes a funding plan. Within 15 days after that, owners get a notice on the CAO form, and the plan starts 30 days later.
- The board spends the reserve fund on major repair and replacement without owner consent. It is never paid out to owners except on termination.
Deductibles and charges to one owner
- The part of an insured loss inside the deductible is a common expense.
- If an owner, tenant or resident damages the owner's unit, the lesser of the repair cost and the deductible is added to that owner's common expenses. A by-law can widen this.
- When the corporation does an owner's repair work under s. 92, the cost is added to that owner's common expenses.
Unpaid fees and liens
- Default creates a lien on the unit for the unpaid amount, interest and reasonable collection costs (s. 85(1)).
- Give the owner written notice at least 10 days before registering (s. 85(4)), then register the certificate of lien within three months after the default, or the lien expires (s. 85(2)).
- The lien ranks ahead of the mortgage and other charges, if the corporation notifies each registered encumbrancer on or before registration.
- It is enforced like a mortgage. If the unit is rented, the corporation can require the tenant to pay rent to it, up to the amount owed.
- An owner 30 days or more in arrears cannot vote, and a director whose lien is not discharged within 90 days stops being a director.
Read on e-Laws and the Condominium Authority of Ontario's site on 31 October 2026. Section numbers are from the Condominium Act, 1998 and its regulations as consolidated that day. Your declaration and by-laws can add rules of their own.
Common questions
How are condo fees calculated in Ontario? +
Each owner pays the share of common expenses set in the declaration, which lists a percentage for each unit.
How much can condo fees increase in Ontario? +
We found no cap in the Condominium Act, 1998 or O. Reg. 48/01. The board sets the budget, and owners see it and any changes in the periodic information certificate.
What is the 10% reserve fund rule? +
Until the first reserve fund study and funding plan are in place, reserve contributions must be at least 10% of the budgeted common expenses excluding the reserve fund.
How often is a reserve fund study required in Ontario? +
Within the first year after registration, then every three years. The regulation has no exemption for small corporations.
What does a reserve fund study cost? +
The Act does not set a price. Its cost is a common expense, which the board may charge to the reserve fund.
Can a condo put a lien on my unit? +
Yes, for unpaid common expenses, interest and reasonable collection costs. It must give you 10 days' written notice and register within three months of the default.
Can I stop paying condo fees if the board does not fix something? +
No. Section 84(3) says an owner cannot avoid paying because of a claim against the corporation or by giving up use of the common elements.
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