Condo-Smart

I recently had a call from a self managed condominium corporation. They were questioning when a reserve fund needed to be completed. They were pretty sure because they were just 12 units – they didn’t need a reserve fund study and weren’t sure why the Realtor for a unit up for sale was demanding the study.

The upshot is – ALL condominiums in Alberta require a reserve fund study,report and plan every five years. There are no size limits. And there are no exceptions. Rural, urban – its all the same. All condominiums need a reserve fund study every five years. Even if you are a condominium corporation with just two units, a reserve fund is needed. Where small and larger corporations differ is in who can prepare the study. If the corporation is under 12 units – the reserve fund study can be conducted by a person or persons who do not carry the qualifications of someone who is required to conduct the study in a larger corporation (over 12 units). In other words – a small corporation can conduct their own reserve fund study. A larger corporation must use the services of someone who has experience and knowledge with respect to the operation , maintenance and repairs to depreciating property. (see section 21 of the Regulations).