CCL08/09

The Truth
BEHIND REGIME FEES
BY STACY E. DOMINGO
R
egime fees, often no more than an afterthought when
you are in the market for a condominium, townhouse
or villa, can be an unpleasant a surprise when you go to
close the deal. It is important to work with an experienced
and knowledgeable agent so you will be prepared for the
supplementary fees that might go along with ownership in
a speciﬁc community. When you sign on the dotted line, in
addition to monthly mortgage and insurance payments, you
might ﬁnd yourself responsible for regime fees or, as they are
sometimes called, maintenance fees.
Communities charge these fees to Davidson Lofts included a ﬁrewall and
pay for the maintenance of amenities sprinklers, which lowered insurance
and common areas. Amenities usually premiums.
include pools, basketball and volleyball Although owners are responsible
courts, lakes, clubhouses, golf courses for insurance inside their homes, the
Photo: Courtesy of Davidson Lofts
and ﬁtness centers. Maintenance typi- cost of the insurance on the exterior is
cally covers pest control, refuse pickup, split among the inhabitants. Quality
an assessment that would hike regime
landscaping, painting and general construction helps reduce insurance
fees by several hundred dollars a month.
upkeep of the property. premiums, in turn lowering monthly
When shopping for a condo or
Throughout the Southeast, regime regime fees.
townhome, you should be aware that
or maintenance fees vary, depending “People are only willing to pay so
sellers, representatives of the home-
on the type of buildings and, of course, much for insurance,” Cooper explains.
owners’ association and management
their location. For example, in a small, “Luckily, for people everywhere across
companies are not required to disclose
rural Georgia town, the regime fee for the Southeast, the fees have settled since
information regarding the possibility
a townhouse can run as little as $40 a the spike after Hurricane Katrina.”
of an upcoming assessment. Your best
month, rising to $550 monthly or more Regime fees can rise after you pur-
option is to learn as much as you can
for a loft in downtown Charleston, chase a unit, but that usually doesn’t
about the history of regime fees and
South Carolina. That’s a difference of happen unless a board made up of
assessments in the community and, if
more than $6,000 a year – something people who own condos or townhomes
possible, to speak with several current
to keep in mind when purchasing a in the community presents compelling
owners in addition to the seller.
condo. reasons for the increase. For instance, a
While there are a few horror stories,
“Our regime fees are actually low community in Florida recently dis-
most regime fees are necessary so the
for the area,” says Tyler Cooper, broker covered structural problems on several
residents of a community will be able
for InterCoast Properties in Charles- buildings but did not have the money
to enjoy its amenities and common
ton, adding that renovations of the to make the repairs. One solution was
areas.

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