Ontario Real Estate Licensing Exam Practice · Question
According to the Condominium Act, 1998, which of the following is the primary purpose of a condominium corporation's reserve fund?
The reserve fund is legally mandated by the Condominium Act, 1998, to ensure there are sufficient funds available for major repairs and replacements of the comm
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Question: According to the Condominium Act, 1998, which of the following is the primary purpose of a condominium corporation's reserve fund?
Answer options: ✅ To fund major repairs and replacements of the common elements and assets of the corporation
- To cover the day-to-day operating expenses of the condominium building
- To provide a financial safety net for individual unit owners facing hardship
- To invest in income-generating assets to reduce common expense fees
Correct answer: To fund major repairs and replacements of the common elements and assets of the corporation
Explanation: The reserve fund is legally mandated by the Condominium Act, 1998, to ensure there are sufficient funds available for major repairs and replacements of the common elements, such as roofs, elevators, and structural components.
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