Property Management Licensing Practice Exam · Question
What is the primary purpose of a capital reserve fund for a condominium corporation in Canada?
A capital reserve fund is legally required in many provinces for condominium corporations to ensure there are sufficient funds for major repairs and replacement
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Question: What is the primary purpose of a capital reserve fund for a condominium corporation in Canada?
Answer options:
- To cover day-to-day operating expenses
- To fund unexpected tenant disputes ✅ To finance major repairs and replacements of common elements in the future
- To provide a fund for property tax payments
Correct answer: To finance major repairs and replacements of common elements in the future
Explanation: A capital reserve fund is legally required in many provinces for condominium corporations to ensure there are sufficient funds for major repairs and replacements of common elements over time.
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