Hashtags: #CondoBuying #ReserveFund #KingstonCondos #RealEstateTips #FinancialPreparednessAvoid the most expensive mistakes you can make when buying a condo. Get your condo buying or selling checklist at https://www.kingston-condos.ca or call Melissa Morton at (613) 539-6441.Estimated Reading Time: 2 minutesA condo's reserve fund is essential for covering unexpected expenses related to the building's structure, such as a new roof, windows, or necessary electrical upgrades. Here's why understanding the health of a condo's reserve fund is critical before making a purchase.The Role of a Reserve FundThe reserve fund acts as a financial safety net for a condo building, allocated for major repairs and upgrades. Its adequacy is a crucial factor in maintaining the building's condition and ensuring that unexpected costs are covered without imposing a financial burden on the residents.Why Your Lawyer's Review is CrucialBefore purchasing a condo, having your lawyer review the reserve fund's status is vital. A well-funded reserve indicates a well-managed property, reducing the risk of future special assessments. Special assessments are additional charges levied on owners to cover significant expenses not covered by the reserve fund.Case Study: The Importance of a Healthy Reserve FundConsider the experience of clients who purchased a unit in Kingston with a reserve fund of $600,000, impressing both the buyers and their lawyer. However, if a building's reserve fund is depleted to a point where it cannot cover necessary expenses, such as dropping to $50,000 after a major repair, it's a red flag. A low reserve fund could lead to special assessments or even discourage purchase, as advised by legal counsel.ConclusionA healthy reserve fund is a sign of a financially stable and well-maintained condo building. It's a critical aspect to consider when purchasing a condo, ensuring you're not faced with unexpected financial contributions shortly after your purchase.Produced in Kingston, Ontario by Jaeson Tanner https://localyoutube.com -