A portion of your monthly condo fees goes to build up a reserve fund.
A condo corporation must set up and maintain a reserve fund for the major repair and replacement of common elements and/or assets. These can include the roof, exterior of the building, roads, sidewalks, sewers, heating, electrical, plumbing, elevators, laundry and recreational facilities. The reserve fund is not used to add new common elements such as a new exercise room.
The corporation must hire a qualified professional, like an architect or engineer, to conduct a reserve fund study. This study:
New condo corporations must complete a reserve fund study within 1 year of registration. The fund must be adequately funded by the end of the following fiscal year. The corporation must conduct reserve fund studies at least every 3 years.
The value of a condo unit can depend on the financial health of the reserve fund.
The sale of the severed portion of vacant land would not be subject to GST/HST since it is not capital property used primarily (more than 50%) in a business and it is not being sold in the course of a business. However, if the land was subdivided into more than two parts, sales of the severed portions are not exempt unless the portion is sold to a relative (or to a former spouse or common-law partner) for their personal use.