Is the condo reserve fund balance adjusted on closing day in Ontario?

No, the reserve fund balance is not adjusted on the statement of adjustments when buying a resale condo in Ontario. The reserve fund belongs to the condominium corporation collectively, not to any individual unit owner. When you buy a unit, you take over the seller's percentage ownership interest in the corporation, including the proportionate share of the reserve fund, without any cash adjustment.

What does matter, however, is whether the reserve fund is adequately funded relative to the corporation's anticipated major repair and replacement needs. An underfunded reserve fund means the corporation may need to levy a special assessment on unit owners to cover future capital expenses like roofing, elevators, or windows. This is why reviewing the status certificate and reserve fund study (if available) with your lawyer is so important before waiving conditions.

If the status certificate discloses a known or anticipated special assessment, that may be negotiated between buyer and seller — the seller might credit the buyer for the anticipated amount. But that would be a negotiated adjustment, not an automatic one. The status certificate review is one of the most important due diligence steps in any Ontario condo purchase.