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Condo Lingo – Common Errors And Misconceptions Part 4

Michelle Kelly
Publication date:
October 22, 2021
Article Summary: 

This article discusses common errors and misconceptions related to terms and phrases used in the condo industry. The focus is on terms related to requirements for regularly inspecting the property and planning for the future. The article explains the difference between a reserve fund study and a performance audit, where a reserve fund study is required every three years to ensure adequate funds are collected from owners for expected major repair and replacement costs of common elements and assets, while a performance audit is conducted to determine if there are any construction deficiencies in the common elements. The performance audit is reactive, while the reserve fund study is proactive.


condominium, reserve fund study, performance audit, common elements, construction deficiencies, major repair, replacement, funding plan, physical analysis, financial analysis.

Source Citation: 
Michelle Kelly
Condo Lingo – Common Errors And Misconceptions Part 4
October 22, 2021
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