The purpose of a Condominium Reserve Fund Report is to provide cost estimates for various reserve components that are subject to major repairs and/or replacement over the lifetime of the property, and to estimate the funding required for such major repairs and replacement in accordance with the provisions of Section 38 of the Alberta Condominium Property Act, 2000. In the province of Alberta, this document is mandated to be updated every five years.
TruePoint Appraisals prepares a comprehensive condominium reserve fund study that is fully compliant with the current legal requirements and provides condominium corporations with a clear, realistic and effective plan for managing reserve fund requirements. Our reserve fund studies provides clear component descriptions, detailed cost explanations and a comprehensive analysis of the physical elements and financial operations to assist condominium corporations in understanding and implementing effective reserve fund strategies.
The methodology surrounding a reserve fund plan is:
- Determine the inventory of all major common property as stipulated in the Condominium Plan
- Review the operation and maintenance history of the complex, including the associated costs, as presented by the Board
- Perform inspections of the common property components to form an opinion of their general condition, and assess the remaining life of the components.
- Determine the repair and replacement requirements for the major common property components based upon their age, condition and expected remaining life
- Offer an opinion of probable cost for the work required
- Develop financial requirements to establish and maintain a reserve fund to finance the future repair and replacement of the common property
All TruePoint Appraisals Reserve Fund Studies are in accordance with the standards for the Certified Reserve Fund Planner professional designation (CRP) through the Real Estate Institute of Canada. This standard is widely recognized to be the most effective reserve fund planning system available.
Click Here for information on the CRP designation.