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Oliver Reprich

Oliver Reprich Muskoka REALTOR

Reserve fund of a Condo Corporation

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:

  • recommends how much money is needed for the reserve fund 
  • includes estimates of how long the common elements and assets will last and what it will cost to repair or replace certain parts of each one
  • is designed to help keep the condominium property in good repair
  • reduces the risk that owners will need to pay a special assessment fee to make sudden major repairs
  • helps ensure that the cost of future repairs is not passed on only to future owners
  • must be presented to the board for approval

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.


More common questions related to the topic: Buying Property

Is right now a good time to buy?

Buy first or sell first?

Where can I get my well water tested?

What is title insurance?

Why should I buy a home, instead of renting?

What is a home inspection and should I have one done?

What should I expect from an open house?

What is a "Buyer's Agent"?

What's the best way to decide how much to offer for a house?

What if my offer is rejected?

What is the Land Transfer Tax Rate in Muskoka?

Land Transfer Tax Refund for First-time Homebuyers

I own a parcel of vacant land that I wish to subdivide into parts in order to sell the parts separately. Does the HST apply to these sales? 

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.

What does it cost as a buyer to use a Sales Representative?

Can my Sales Representative give me information regarding properties from other companies?

Why do I need to sign a Working with a REALTOR® form?

Do you qualify for Land Transfer Tax Refunds for First-Time Homebuyers

When do I get my keys, of the house I purchased?

Do you understand responsibilities of owning a condo?

Before you buy a condo.

Monthly common expense fees of Condo Corporation

Can I withhold my condo fees until urgent repairs are carried out in my unit? 

Ask your own Question.

MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.

Bracebridge Realty, your trusted local real estate brokerage in the "Heart of Muskoka"

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