Reserve Fund Study

The Reserve Fund Study is a mandatory requirement for all condominium corporations in Ontario to ensure there are adequate funds to perform major repairs and replacements to the common elements. The study consists of a physical review of the common elements followed by a financial projection to ensure the corporation remains financially viable over a minimum 30-year timeframe. There are three classes of Reserve Fund Study, with Class 1 being the initial study conducted after the condominium's registration. Class 2 and 3 are updates required every six years and every three years, respectively. Different types of condominiums in Ontario include Standard Condominium, Phased Condominium, Common Element Condominium, and Vacant Land Condominium. Each type has different boundaries of responsibility between the unit holder and the corporation. It is important to understand the condominium declaration to be aware of who is responsible for which components.