CDC Consulting Services Inc Appraisals Alberta

CDC Contingency / Reserve Fund Assessment Services

A reserve plan is a financial document developed to accommodate the replacement of the depreciating components of the common areas of a condominium. Reserve Fund Assessments for condominium projects are an invaluable tool which enables condominium unit owners, boards and property managers to anticipate maintenance costs for items under the responsibility of the condominium association, which will be incurred and to make appropriate financial plans so that anticipated obligations can be met. The Contingency Reserve Fund Assessments is prepared in full compliance to applicable provincial regulations.

Frequently Asked Questions

Q. When an owner sells a strata lot, does the seller get a return of any funds from the contingency reserve fund?

Q. The strata corporation has a significant amount in the contingency reserve fund. An owner who is selling their strata lots has requested a return of the owner's proportionate share of the contingency reserve fund. Is the strata corporation required to do this?

Q. Our operating fund is overspent. May the strata council use money from the contingency reserve fund to cover the shortfall?

Q. When an owner sells a strata lot, does the seller get a return of any funds from the contingency reserve fund?

A. No. On the sale of a strata lot, the seller is not entitled to any return of contributions to the contingency reserve fund.

Q. The strata corporation has a significant amount in the contingency reserve fund. An owner who is selling their strata lots has requested a return of the owner's proportionate share of the contingency reserve fund. Is the strata corporation required to do this?

A. No. On the sale of a strata lot, the seller is not entitled to a return of contributions to the contingency reserve fund.

Q. Our operating fund is overspent. May the strata council use money from the contingency reserve fund to cover the shortfall?

A. A strata corporation may lend money that is in the contingency reserve fund to the operating fund if:

a) the loan is repaid by the end of the fiscal year of the strata corporation; AND

b) the loan is for the purpose of covering temporary shortages in the operating fund resulting from expenses becoming payable before the budgeted monthly contributions to the operating fund to cover those expenses have been collected.

The strata corporation must inform the owners as soon as feasible of the amount and the purpose of any loan from the contingency reserve fund. An example of the type of operating fund expense for which a strata corporation may borrow from the contingency reserve fund is to pay an insurance premium that comes due prior to the fiscal year end of the strata corporation.

Did you know...

CDC Consulting Services Inc network consists of over 50 appraisers and 10 appraisal firms.

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Residential Appraisals Commercial Appraisals Assessment Appeals Insurance Appraisals Agricultural Appraisals Personal Property Appraisals Business Valuation Reserve Fund Green Building	CDC Contingency / Reserve Fund Assessment Services A reserve plan is a financial document developed to accommodate the replacement of the depreciating components of the common areas of a condominium. Reserve Fund Assessments for condominium projects are an invaluable tool which enables condominium unit owners, boards and property managers to anticipate maintenance costs for items under the responsibility of the condominium association, which will be incurred and to make appropriate financial plans so that anticipated obligations can be met. The Contingency Reserve Fund Assessments is prepared in full compliance to applicable provincial regulations. Frequently Asked Questions Q. When an owner sells a strata lot, does the seller get a return of any funds from the contingency reserve fund? Q. The strata corporation has a significant amount in the contingency reserve fund. An owner who is selling their strata lots has requested a return of the owner's proportionate share of the contingency reserve fund. Is the strata corporation required to do this? Q. Our operating fund is overspent. May the strata council use money from the contingency reserve fund to cover the shortfall? Q. When an owner sells a strata lot, does the seller get a return of any funds from the contingency reserve fund? A. No. On the sale of a strata lot, the seller is not entitled to any return of contributions to the contingency reserve fund. Q. The strata corporation has a significant amount in the contingency reserve fund. An owner who is selling their strata lots has requested a return of the owner's proportionate share of the contingency reserve fund. Is the strata corporation required to do this? A. No. On the sale of a strata lot, the seller is not entitled to a return of contributions to the contingency reserve fund. Q. Our operating fund is overspent. May the strata council use money from the contingency reserve fund to cover the shortfall? A. A strata corporation may lend money that is in the contingency reserve fund to the operating fund if: a) the loan is repaid by the end of the fiscal year of the strata corporation; AND b) the loan is for the purpose of covering temporary shortages in the operating fund resulting from expenses becoming payable before the budgeted monthly contributions to the operating fund to cover those expenses have been collected. The strata corporation must inform the owners as soon as feasible of the amount and the purpose of any loan from the contingency reserve fund. An example of the type of operating fund expense for which a strata corporation may borrow from the contingency reserve fund is to pay an insurance premium that comes due prior to the fiscal year end of the strata corporation. Did you know... CDC Consulting Services Inc network consists of over 50 appraisers and 10 appraisal firms.

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