Real Estate Council of Alberta Fundamentals Exam 2025 – Complete Practice Test

The correct approach to calculating the monthly contribution of a condominium owner involves understanding how the costs of operating the condominium corporation are allocated among all unit owners. This is typically based on the annual expenses of the condominium, which cover maintenance, management, insurance, and other operational costs.

The formula for calculating the monthly contribution generally involves dividing the annual expenses by the total number of units or the contribution factor related to each unit type. While you suggested that annual expenses should be divided by 10,000, this does not reflect a standard method of calculation in most condominium governance structures. The allocation is usually done through the use of a unit factor or a similar metric that accurately reflects the share of each unit in relation to the overall condominium budget.

The correct option likely involves the division of annual expenses by 12, thereby distributing the total annual costs evenly across the months. This aligns with the typical budgeting cycle of condominiums where expenses are anticipated to be consistent throughout the year. The unit factor would also play a role in determining each owner's share, not simply as a direct multiplication of expenses.

Ultimately, the key takeaway is that while various methods might suggest different calculations, the most accurate representation for monthly contributions would involve dividing annual expenses by the number of months based on fair