B.B. writes: Dear Paul: Our Condo Corporation must get a Reserve Fund study completed in the next six months. We are told that it could cost close to $5,000 to get this done. Our property manager told us that we could charge the cost to the reserve fund. Is this correct? Paul replies: Your property manager may have thought of something different when giving you this advice. According to the Manitoba Condominium Act, the cost of the reserve fund study is a common expense. As such, it must be paid for from your corporation’s operating expenses and not out of the reserve fund.
Tags: Reserve Fund