Common Charges and Working Capital at closing?

Is the building finance very bad?

Gtr, It should be all in the condo application. While it is not common, I have paid this more than once. It is just a way for condo association to get some extra money. I think they may be calling it working capital contribution equal to two months of common charges.

Isn't this something you should have known before signing the contract?

I think it is easy to miss it may be in the condo application rather than by-laws in the offering plan.

Without knowing more about the situation, it's difficult to tell.

Anecdotally, I have seen buildings ask for maintenance in advance in cases where the buyer is a first time buyer or the buyer's finances are not strong or various other reasons. Every building is different, and everything is negotiable.

As long as this "working capital" is used for first and second month's maintenance and not a semi-permanent deposit, I would not be too concerned.

It is not that gtr didn't know about it in the application, it is that he wants to know the rational behind it, you guys didn't answer his question, LOL

Anton, you're misreading the question.

I tried to help GTR “It is just a way for condo association to get some extra money.”

stache, gtr's main question is " is it common in the city for buyers to do so at closing?"

who's misreading the question?

simply gtr wants to know others' situations in general case

" Is 2 months of common charges and working capital the same thing? "

The 2 months is most probably a "contribution" to the building's working capital fund.
And if it's not noted in the Offering Plan, House Rules, etc then it's not really kosher.