Condo Lingo – Common Errors And Misconceptions Part 4

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.