How does a Condo Reserve Study Affect You?

A condo reserve study is one reason that living in a condo is much different than living in a regular home. A condo reserve study is a process that is conducted by architects or engineers on a building. These building experts look at the condition of the building and try to make an accurate assessment of what it would take to fix the building. While it may seem like something that does not apply to you as an individual, it can affect you if you are planning on buying a condo. 

Reserve Fund

When you buy into a condo, you will have some sort of an association that every condo owner pays into. These costs that you pay into the association fund go towards the repairs and maintenance of the building. With many condos there are several common areas that require regular maintenance in order to look nice. Everyone has to pay their equal share of the costs in order to be an owner in the building. 

The condo reserve study affects the amount that everyone has to pay into the reserve fund. When the reserve study finds that the fund is under budget, the association will raise the price that each person has to pay. 

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