Reserve Fund ​

A reserve fund is the money your condominium corporation sets aside for the major repair and replacement of the things owners share — the roof, siding, parking areas, walkways, and building systems. It's kept separate from the operating fund that covers day-to-day costs.

What it means for your board ​

Every owner benefits from the common property, and all of it wears out eventually. The reserve fund is how a board pays for those big-ticket replacements without hitting owners with a surprise special levy when the roof finally fails. A healthy reserve fund is one of the clearest signs of a well-run corporation — and a weak one is one of the first things a buyer's lawyer looks for.

Contributions to the reserve fund come from owners as part of their regular condominium contributions, and the right amount is guided by a reserve fund study.

What the Condominium Property Act says ​

Alberta condominium corporations are required to establish and maintain a reserve fund for the major repair and replacement of common property and the corporation's shared assets. The reserve fund must be kept separate from the operating fund and used for its intended purpose. Alberta's regulations also set out rules — and some limited considerations for smaller corporations — around reserve funds and the studies that inform them.

Confirm exactly how these requirements apply to your corporation under the Condominium Property Act and its regulations before making decisions — the rules that apply to a small self-managed corporation are not always obvious.

How Qworum helps ​

Qworum keeps your reserve fund, operating fund, and contributions organized in one place, so your board can see at a glance whether you're keeping pace. Not sure where you stand? Try the free Reserve Fund Calculator, or start a free trial.

General information about Alberta condominium concepts — not legal advice. Confirm your corporation's obligations under the Condominium Property Act.