Strata Management Licensing Practice Exam · Question
Under the Strata Property Act, what is the primary purpose of a strata corporation's contingency reserve fund (CRF)?
The Strata Property Act mandates the contingency reserve fund (CRF) specifically for major repairs and replacements that occur less often than once a year. It's
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Question: Under the Strata Property Act, what is the primary purpose of a strata corporation's contingency reserve fund (CRF)?
Answer options: ✅ To cover significant repair and replacement of common property, common assets, and those parts of a strata lot that the strata corporation is responsible to maintain.
- To fund annual operating expenses such as utilities and landscaping.
- To provide a financial buffer for unexpected legal fees and judgments.
- To repay any outstanding mortgages acquired by the strata corporation for amenities.
Correct answer: To cover significant repair and replacement of common property, common assets, and those parts of a strata lot that the strata corporation is responsible to maintain.
Explanation: The Strata Property Act mandates the contingency reserve fund (CRF) specifically for major repairs and replacements that occur less often than once a year. It's not for annual operating costs, legal fees, or mortgage repayments.
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