Reserve fund study

What is a Reserve Fund Study?

The reserve fund study (also known as a reserve plan) is a detailed analysis that evaluates the condition of a building’s common components and forecasts the future repair or replacement costs required over the coming years.
The goal: to establish a long-term financial plan so that the necessary funds are available at the right time—without surprises.

In practical terms, the study covers a minimum 25-year horizon, projecting the major work to be done, its timing, its estimated cost, and the recommended annual contributions to the reserve fund.

Why it’s essential

To avoid unexpected special assessments: costly surprises are easier to manage when they’re planned for.

To ensure the building’s longevity: a well-maintained building preserves its value and avoids rapid deterioration.

To comply with new legal obligations in Quebec: as of August 14, 2025, condominiums must comply with Loi 16 requirements by conducting a reserve fund study every 5 years and maintaining an up-to-date maintenance logbook.

For transparency and credibility: co-owners, buyers, and financial institutions expect to see a clear and structured long-term plan.

What our service includes

At THomXpert, our study is designed to be complete, accurate, and easy to understand:

1. Initial Contact and Preparation
   We begin with an initial meeting to understand your specific needs and the characteristics of your building. On that day, we collect all necessary documents such as the declaration of co-ownership, plans, and maintenance history.

2. Technical Inspection
   As a certified technologist, Thomas performs a detailed visual inspection of all common building components, including exterior structures, mechanical and electrical systems, and fire protection systems. Each component is carefully analyzed to determine its current condition and remaining service life.

3. Analysis and Cost Estimation
   The data collected during the inspection are used to identify repair and replacement needs. A maintenance logbook is then created (listing each element, its condition, and maintenance frequency). Future costs are projected by factoring in inflation and investment returns over a 25-year period.

4. Financial Planning
   A detailed plan of the co-owners’ annual contributions is prepared, covering a 25-year period to ensure optimal financial management.
   We present several annual contribution scenarios for the reserve fund and recommend the one best suited to the financial capacity of the condominium.

5. Final Report and Follow-up
   We deliver a clear and accessible final report, including all findings and financial scenarios. The study includes the following documents :

- Building Condition Report: Summarizing observations from the general visual inspection of the condominium’s common areas.
- Maintenance Logbook: Listing all common elements and describing major repairs and replacements, with cost and year of intervention.
- Reserve Fund Calculation: Presenting contribution scenarios with tables, charts, and a 25-year financial forecast.

Once the report is finalized, it is presented to the board of directors, and all questions are clarified.

Timeline, Frequency, and Legal Obligations

The study must be updated at least every 5 years.

Condominiums must comply with these requirements by August 14, 2028, to complete their first study or update.

The study must be based on an up-to-date maintenance logbook describing the building’s components, completed work, future inspections, and maintenance intervals.

Why choose THomXpert for this study?

With THomXpert, condominiums benefit from strong building expertise and a deep understanding of Loi 16 requirements. Each study is carried out with particular attention to the financial and technical realities of the property.

Every study is conducted by a professional technologist, member of the Ordre des technologues professionnels du Québec (OTPQ), ensuring independence, competence, and integrity.

The final report is clear, complete, and designed to be easily used by the board of directors or property manager, facilitating informed decision-making and long-term planning.