All condominium corporations require a reserve fund study. So what are the consequences of having a poor or out-of-date one? The following are several consequences for all condominium stakeholders:
- Negative impact on property sales when selling a unit
- Unrealistic life expectancies or budget estimates
- Insufficient funds for repairs or replacements of common elements, necessitating a large increase in contributions or even a special assessment
- Risk to the long-term durability of the property
Condominium boards across Canada should engage qualified consultants to assist in the review and reporting of reserve funds. The importance cannot be understated.