How do I evaluate the reserve fund information in an Ontario status certificate?

The status certificate will disclose the current reserve fund balance and reference the most recent reserve fund study. A reserve fund study — conducted by a qualified professional — estimates the cost of repairing and replacing every major common element over a planning period and calculates the contributions needed to fund those costs. The corporation is required to conduct studies at least every three years and update them every three years.

When reviewing reserve fund information, compare the current balance to what the most recent study recommended should be on hand at this date. A fund that is significantly below the recommended level suggests the corporation has been under-contributing, which increases the risk that owners will face a special assessment for major repairs that the fund can't cover.

Ask your lawyer to request the full reserve fund study if it isn't attached to the certificate. Look at the age of the study — a study conducted six or more years ago may significantly underestimate current repair costs. Also note the age of the building's major components (roof, parking membrane, elevators) and whether large-cost replacements are approaching.