A condo corporation must set up a reserve fund for the major repair and replacement of common elements. These can include the roof, exterior of the building, roads, sidewalks, sewers, heating, electrical, plumbing, elevators, laundry and recreational facilities.
The corporation must hire a qualified professional such as an architect or engineer to conduct a reserve fund study. This study:
* recommends how much money is needed for the reserve fund
* includes a site inspection that estimates how long the major components of the condominium, together with replacement costs of each component, will last
* is designed to help keep the condo property in good repair
* reduces the risk that owners will need to pay a special assessment to make sudden major repairs
* must be presented to the board for approval.
See the Condominium Act, 1998 for details about the reserve fund.
New condos must complete a reserve fund study within one year of registration. The fund must be fully funded by the end of the following fiscal year.
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Contact the Jeffrey Team for more information - 416-388-1960
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