WHAT IS A CONDOMINIUM RESERVE FUND?
Each condominium association is required to set aside a portion of the condo fees for a reserve fund to pay for major repairs and ensures that the condominium common elements will be maintained in good shape. You do not want to move in your new home only to discover that the reserve fund is under funded and major repairs are required. This could mean a significant increase in condominium fees or the levying of charges, commonly known as special assessments, to the unit owners by the condominium trust to pay for the needed repairs. Special assessment charges can be high depending on the type of work required. Ensure you obtain and review the condominium’s financial statements.
