Twenty years ago, a Capital Contribution was a very rare line item paid by a buyer to reimburse the seller. Today, a Capitol Contribution is standard for almost any purchase, and the payment now goes to the condo association and not the seller.
So WTF is a Capitol Contribution?Quite simply, it is a one-time fee collected from every buyer. Those funds are paid to the condo association and added to their bank account for long-term capital improvements. Most commonly, the fee is equivalent to two months of condo fees. Though often, the fee can be as high as six months (for associations looking to build their kitty).
Everyone buyer pays the fee, so don’t think you are being singled out. And the money is not going to line someone else’s pocket. You’re basically paying the condo association in which you are now a member. So cough it up…