Understanding the Reserve Fund Study: A Key Tool for Condo Management

What is a Reserve Fund?

The reserve fund is a mandatory savings account for condominiums. It is used to pay for major repairs or replacements to common elements, such as the roof, windows, balconies, or elevators. This fund is built up through monthly contributions from co-owners as part of the condo fees.

What Does Quebec’s Law 16 Say?

Since the adoption of Law 16, all condominiums in Quebec must have a reserve fund study conducted every five years by a qualified professional. This study evaluates:

The current condition of the building’s common components;
Their remaining useful life;
The estimated cost of repair or replacement;
The amount the co-owners should save annually to meet those costs without surprises.

Why Is This Study Important?

A proper reserve fund study helps to:

1. Avoid unexpected special assessments

Without long-term planning, co-owners can be hit with sudden large bills. The study helps spread the costs over time.

2. Preserve the value of the building

A well-maintained building retains its market value. More and more buyers ask for proof of a healthy reserve fund.

3. Comply with the law and protect the condo board

Failing to keep the study up to date could lead to legal issues or penalties—and conflict between co-owners.

4. Enable clear and predictable management

The study makes long-term budgeting easier and builds trust between co-owners and the board.

Who Can Perform a Reserve Fund Study?

The study must be conducted by a qualified professional, such as a Professional Technologist who is a member of a recognized order. They must have experience in building evaluation, cost estimation, and financial planning.

Trust THomXpert With Your Reserve Fund Study

At THomXpert, we deliver full reserve fund studies that meet the requirements of Law 16, with clear recommendations and tailored financial planning.

Our promise: to give you a practical tool for better planning, preventing surprises, and protecting the future of your building.

🔍 Visit our website to learn more, or contact us today for a quote.

Understanding the Reserve Fund Study: A Key Tool for Condo Management