What is the main requirement regarding reserve funds in condominium management?

The main requirement regarding reserve funds in condominium management is found in Sections 27-33 of the Ontario Condominium Act. These sections outline the obligations of a condominium corporation concerning the establishment and maintenance of a reserve fund, which is intended to cover major repairs and replacements in the future.

The legislation specifies the financial requirements that ensure that the condominium maintains adequate funds to address significant expenses that can arise over time, such as roof replacement, elevator repairs, and other capital improvements. The provisions also dictate how the reserve fund should be handled in terms of contributions from unit owners, the investment of reserve funds, and the need for a reserve fund study to assess future financial needs.

Understanding this framework is essential for condominium managers and board members to ensure that the community is financially sound and that the needs of the residents are met over the long term. The other options, while related to different aspects of real estate transactions or condominium governance, do not specifically address the critical management requirements for reserve funds.