Condominium Act, 1998

Ontario's Condominium Act, 1998, was passed on December 17, 1998, and proclaimed on May 5, 2001. The following sections* of the Act are relevant to Reserve Funds, Insurance Appraisals and Performance Audits.

* These excerpts are unofficial versions of the Government of Ontario legal materials and are provided for convenience only in accordance with copyright policies of the Queen's Printer for Ontario. Please refer to the E-laws website for the official version of Government of Ontario legal materials.

Relevant Sections

• Reserve Fund: The corporation shall establish and maintain one or more reserve funds. 1998, c. 19, s. 93 (1).
• Purpose of fund: A reserve fund shall be used solely for the purpose of major repair and replacement of the common elements and assets of the corporation. 1998, c. 19, s. 93 (2).
• Designation not required: A fund set up for the purpose mentioned in subsection (2) shall be deemed to be a reserve fund even though it may not be so designated. 1998, c. 19, s. 93 (3).
• Contributions to fund: The corporation shall collect contributions to the reserve fund from the owners, as part of their contributions to the common expenses. 1998, c. 19, s. 93 (4).
• Amount of contributions: Unless the regulations made under this Act specify otherwise, until the corporation conducts a first reserve fund study and implements a proposed plan under section 94, the total amount of the contributions to the reserve fund shall be the greater of the amount specified in subsection (6) and 10 per cent of the budgeted amount required for contributions to the common expenses exclusive of the reserve fund. 1998, c. 19, s. 93 (5).
• Same, after first reserve fund study: The total amount of the contributions to the reserve fund after the time period specified in subsection (5) shall be the amount that is reasonably expected to provide sufficient funds for the major repair and replacement of the common elements and assets of the corporation, calculated on the basis of the expected repair and replacement costs and the life expectancy of the common elements and assets of the corporation. 1998, c. 19, s. 93 (6).
• Income earned: Interest and other income earned from the investment of money in the reserve fund shall form part of the fund. 1998, c. 19, s. 93 (7).
• Reserve fund study: The corporation shall conduct periodic studies to determine whether the amount of money in the reserve fund and the amount of contributions collected by the corporation are adequate to provide for the expected costs of major repair and replacement of the common elements and assets of the corporation. 1998, c. 19, s. 94 (1).
• Contents of study: A reserve fund study shall be of the prescribed class, shall include the material that is prescribed for its class and shall be performed in accordance with the standards that are prescribed for its class. 1998, c. 19, s. 94 (2).