A Reserve Fund is a major long-range financial planning tool that identifies the current status of the capital reserves and is used to provide the basis for long term funding required in the replacement or major refurbishment of a Condominium Corporations common elements.
The Condominium Act, Ontario Regulation 48/10: requires that all Condominium Corporations maintain a Reserve Fund Study (Capital Replacement Plan).
Effective Building Engineering Ltd. prepares Class I, Class II, & III Reserve Funds
Class 1: A Comprehensive Reserve Fund Study done within the first year of registration
Class 2: Reserve Fund Study Up-date with a Site Visit to update an existing study, and should be done alternately every three years with Class 3 (Reserve Fund Study without site visit).
Class 3: Reserve Fund Study up-date without a Site Visit for updating an existing study, and should be done alternately every three years with Class 2 (Reserve Fund Study with site visit).