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What’s a condo reserve fund and why is it important?

Author: Staff
Publication date:
May 17, 2022
Article Summary: 

In this article, the Staff explains what a condo reserve fund is and why it is important. The reserve fund is essentially an emergency savings account that the condo corporation uses for big repairs or lawsuits. A percentage of maintenance fees goes towards building it up. If there isn't enough money in the fund to cover an expense, owners may be required to pay a one-time special assessment fee that can be very costly. To determine if a condo has a healthy reserve fund, a buyer's real estate lawyer can look at the building's status certificate. A failing grade may result in a buyer walking away or buying with their eyes open, while some investors may see it as an opportunity to buy at a lower price.


condo, reserve fund, emergency savings, maintenance fees, special assessment, status certificate, real estate lawyer, big repairs, lawsuits, well-managed, investor opportunity.

Source Citation: Staff
What’s a condo reserve fund and why is it important?
May 17, 2022
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