What can a condo board assess unit owners for?

What can a condo board assess unit owners for?

• A. Legal fees incurred by the board
• B. Personal damages caused by tenants
• C. To fund estimated replacement reserves
• D. To cover real estate commissions

Answer: (C)

A condominium board has the authority to assess unit owners for various costs and expenses related to the operation and maintenance of the condominium. The option regarding assessments to fund estimated replacement reserves is correct because it aligns with a common practice in condominium management. Replacement reserves are funds set aside to cover the future costs of replacing common elements of the condominium, such as roofs, elevators, and other shared amenities. By assessing unit owners to contribute to these reserves, the board ensures that there is a financial buffer available when repairs or replacements are needed, thus protecting the property and maintaining its value. The other options do not typically fall under what a condo board can assess unit owners for. Legal fees solely incurred by the board may not be chargeable directly to unit owners unless they are related to specific incidents impacting the association or the unit owners. Assessing for personal damages caused by tenants generally falls under the responsibilities of the tenant, not the board. Additionally, covering real estate commissions is not a typical expense for which unit owners would be assessed, since commissions are usually related to the sale of individual units, not associated with common area maintenance or operational costs.

A condominium board has the authority to assess unit owners for various costs and expenses related to the operation and maintenance of the condominium. The option regarding assessments to fund estimated replacement reserves is correct because it aligns with a common practice in condominium management.

Replacement reserves are funds set aside to cover the future costs of replacing common elements of the condominium, such as roofs, elevators, and other shared amenities. By assessing unit owners to contribute to these reserves, the board ensures that there is a financial buffer available when repairs or replacements are needed, thus protecting the property and maintaining its value.

The other options do not typically fall under what a condo board can assess unit owners for. Legal fees solely incurred by the board may not be chargeable directly to unit owners unless they are related to specific incidents impacting the association or the unit owners. Assessing for personal damages caused by tenants generally falls under the responsibilities of the tenant, not the board. Additionally, covering real estate commissions is not a typical expense for which unit owners would be assessed, since commissions are usually related to the sale of individual units, not associated with common area maintenance or operational costs.