Skip to main content

Strata Management Licensing Practice Exam · Question

What is the primary purpose of a contingency reserve fund in a strata corporation?

The primary purpose of a contingency reserve fund (CRF) is to cover the cost of major repairs and replacements of common property, fixtures, and fittings that o

Start free practice for Strata Management Licensing Practice Exam

252 questions · no signup required · 40 free questions per day

Start Practice →

Question: What is the primary purpose of a contingency reserve fund in a strata corporation?

Answer options: ✅ To cover major repairs and replacements of common property that occur less often than annually

  • To pay for ongoing routine maintenance expenses
  • To provide a fund for owner social events
  • To supplement the operating budget for unexpected monthly deficits

Correct answer: To cover major repairs and replacements of common property that occur less often than annually

Explanation: The primary purpose of a contingency reserve fund (CRF) is to cover the cost of major repairs and replacements of common property, fixtures, and fittings that ordinarily occur less often than once a year, as mandated by provincial strata legislation.

Start free practice for Strata Management Licensing Practice Exam

252 questions · no signup required · 40 free questions per day

Start Practice →

More about Strata Management Licensing Practice Exam

Related Questions

More for Strata Management Licensing Practice Exam candidates

Ready to practice?

Free, no signup required. Build a wrong-question list as you go.

Start Free Strata Management Licensing Practice Exam Practice →

Related courses

Other Canadian certifications candidates often prepare for alongside this one.