Moved into a condominium and hearing talks about a “reserve fund” but don’t know what it is?

A reserve fund is collected by the condominium corporation to cover the costs of major repairs of common elements and assets, as well as for their replacement, such as the billiards table in the party room. The amount collected depends on the amount predicted to repair or replace these items (over $500), and is determined by a reserve fund study.

Before you move into a condo, make sure to ask about the reserve fund, since you’ll be contributing to it as part of your monthly maintenance fees. Many older buildings may require a higher amount to cover costs for aging equipment.

This entry was posted on Monday, December 3rd, 2007 at 10:05 am and is filed under Condominiums. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.