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Strata Management Licensing Practice Exam · Question

A contingency reserve fund (CRF) in a strata corporation is primarily used for:

The contingency reserve fund is specifically established to cover expenses that occur less often than annually or are not anticipated in the annual operating bu

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Question: A contingency reserve fund (CRF) in a strata corporation is primarily used for:

Answer options:

  • Regular monthly operating expenses
  • Unforeseen emergency expenses only ✅ Major repairs and replacement of common property components that occur less often than annually
  • Rebates to owners at the end of the fiscal year

Correct answer: Major repairs and replacement of common property components that occur less often than annually

Explanation: The contingency reserve fund is specifically established to cover expenses that occur less often than annually or are not anticipated in the annual operating budget, such as roof replacement or exterior painting. This helps avoid sudden special levies.

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