Why do some owners pay a higher (or lower) condo fee?
The monthly condo fee is determined by multiplying the annual budget by each owner’s beneficial interest in the condominium association, which is then paid monthly. What is beneficial interest and how is it determined? Each owner co-owns the common areas. Everyone’s interest, together, equals 100%. The developer, in the master deed section of the legal condominium documents, assigns a beneficial interest to each unit to “fairly” divide out that 100%. While square footage is a general guide, it is only a guide, as the developer could perceive that location, orientation to the sun, and/or other factors beyond strict square footage calculations should be part of the final determination of beneficial interest. As it takes 100% approval of the owners to change beneficial interest calculations, it is practically impossible to re-set the final beneficial table included in the final master deed.
