Massachusetts Real Estate License Practice Test

What is a condo fee typically used to cover?

1. Property tax payments

2. Monthly insurance and maintenance

3. Mortgage payments only

4. All expenses related to the property

The correct answer is: Monthly insurance and maintenance

Condo fees are primarily utilized to cover monthly insurance and maintenance costs associated with the common areas and shared amenities of a condominium complex. These fees contribute to the upkeep of the building's exterior, landscaping, swimming pools, fitness centers, and other communal facilities, ensuring that they are well-maintained and functional for residents. The rationale for focusing on monthly insurance and maintenance is significant because these are ongoing costs necessary for the day-to-day operations and safety of the property. While other expenses may be indirectly related to the overall upkeep and management of the condo, the core purpose of condo fees is targeted towards maintaining shared spaces and providing insurance coverage for those common areas. Therefore, this answer accurately reflects the typical use of condo fees within a condominium association.