Strata Management Licensing Practice Exam · Question
What is the primary purpose of a contingency reserve fund in a strata or condominium corporation?
The contingency reserve fund (CRF) is a savings account for large, infrequent capital expenditures and maintenance items for common property, preventing large s
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Question: What is the primary purpose of a contingency reserve fund in a strata or condominium corporation?
Answer options:
- To provide a social fund for resident events.
- To cover unexpected increases in monthly operating expenses. ✅ To finance major repairs and replacements of common property that occur less often than annually.
- To pay for individual unit owner renovations.
Correct answer: To finance major repairs and replacements of common property that occur less often than annually.
Explanation: The contingency reserve fund (CRF) is a savings account for large, infrequent capital expenditures and maintenance items for common property, preventing large special assessments.
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