Looking to buy a Calgary Condo? Do you currently own a Condo and want to know more? These videos explore the complexities of condominium ownership from Unit Factors to Special Assessments and everything in between.
This video focuses on the importance of a strong reserve fund in a condominium corporation. According to the law in Alberta (Condo Property Act), every condominium corporation regardless of size is required to have a reserve fund study and report completed every 5 years. This study and report will determine an adequate level of funding for future repair and replacement of the capital assets of the corporation.
It will be up to the Board of Directors of the corporation to implement a plan that will result in adequate levels of funding in the reserve fund.
When purchasing a condo, it is vital for the buyer to investigate the “health” of the corporation and that includes the current level of funds available in the reserve.
Having a low or weak reserve fund increases the likelihood of a cash call being imposed on unit owners some time in the future.
Your best protection when purchasing a condo is working with a knowledgeable and skilled real estate professional, such as myself, who can guide you through the process.