New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsEasy
A real estate salesperson is assisting a buyer who is interested in a condominium unit. The buyer asks about the monthly common charges and what they cover. Which of the following is typically included in condominium common charges?
- ABuilding maintenance, insurance for common areas, and reserves.
- BThe salary of the individual unit's property manager.
- CIndividual unit mortgage payments and property taxes.
- DUtility bills for the individual unit and cable TV service.
Show answer & explanationAnswer & explanation
Correct answer: A. Building maintenance, insurance for common areas, and reserves.
Condominium common charges typically cover the expenses associated with the maintenance, repair, and operation of the common elements of the building, as well as building insurance and contributions to reserve funds for future major repairs.
Why the other options are wrong
- B. Condominiums typically have a single property manager for the entire association, whose salary is covered by common charges, not an individual unit's property manager.
- C. Individual unit mortgage payments and property taxes are paid separately by the unit owner, not through common charges.
- D. Utilities and cable for individual units are typically the responsibility of the unit owner, though some basic utilities might be bundled in older buildings.
Condominium Common Charges
Monthly fees paid by condominium unit owners to the homeowners' association (HOA) to cover the costs of maintaining common areas, building insurance, utilities for common areas, and contributions to reserve funds.
- Mandatory for all unit owners.
- Varies by building and amenities.
- Covers collective expenses, not individual unit costs.
Memory trick: Common charges, shared burden, building's journey.