What a reserve fund study is and how to read one before you buy a condo

An Alberta condominium corporation must keep a reserve fund “reasonably sufficient” for major repairs and replacement and it must have a reserve fund study done at least every five years, with a 30-year view. A buyer can ask the corporation for the study and the plan before removing conditions. Reading it tells you what the building expects to spend and how the fund is meant to pay for it.

This post sets out what the Condominium Property Act and its regulation require, which documents a buyer can request and a short method for reading a study. It is general information, not legal advice. A lawyer reviews condo documents for a buyer. For the wider topic, see the condo buying guide.

What the law requires

Section 38(1) of the Condominium Property Act says a corporation must establish and maintain a reserve fund “reasonably sufficient” for major repair and replacement. The Act’s current consolidation on King’s Printer is dated May 14, 2026.

The Condominium Property Regulation (current as of February 15, 2026) adds the study requirement. A reserve fund study, report and plan must be done by a reserve fund study provider and cover an inventory of at least 30 years. Alberta.ca puts it this way: a study must be completed no less than every five years and should consider a 30-year timeframe.

When a study is due

Situation	Timing	Where it comes from
New corporation	Initial study no later than 2 years after the condominium plan is registered	Regulation s.23 to 24, Alberta.ca
Ongoing	A new study on or before 5 years from the day the most recent plan was approved	Regulation s.30, Alberta.ca

The practical point is that a plan from many years ago is out of date. Ask the date of the latest study and the date the plan was approved. If the corporation is near its review date, ask whether a new study is under way.

What a study contains

A study usually lists the common property components that will need major repair or replacement. Examples are roofing, windows, elevators, parking structures, mechanical equipment and paving. It estimates the cost and timing of each item and sets out a plan for funding them.

The exact format varies by provider. Read the summary first, then the inventory table, then the funding schedule. The study is a plan built on estimates, so treat the numbers as estimates.

How to ask for it

A buyer or the buyer’s lawyer can make a written request to the corporation. Under section 44(1) of the Act the corporation provides the prescribed information and documents within 10 days. Section 20.52 of the regulation lists what that includes:

• Budget and annual financial statements.
• Bylaws and rules.
• Minutes of general meetings and board meetings.
• Insurance certificates and policies.
• Reserve fund plans and reports.
• Professional reports, excluding those under privilege.
• A statement of structural deficiencies.
• Loan disclosure statements.
• Parking and storage lease agreements.

An estoppel certificate is separate. Under section 43.2, on written request the corporation must within 10 days certify the contributions payable, how often they are paid, any arrears and any interest owing. It is conclusive proof in favour of the person who asked for it.

Fees are capped by the regulation: up to $200 for the estoppel certificate, up to $100 for the information statement and $10 for other documents or $0.25 per page for hard copies over 40 pages.

How to read a study

Take the documents in this order and write down the answers.

1. Date and author

When was the study done and who prepared it? A study near the end of its five-year cycle is due for an update.

2. The inventory

Which large items are on the list and when are they expected to need work? A roof, windows or an elevator due within a few years is a near-term cost. Ask whether the work is already done.

3. The funding plan

How much does the plan expect owners to contribute each year and is the corporation following it? Compare the plan with the latest financial statements. If the fund balance is far below what the plan shows, ask why.

4. Special levies

Section 39.1 lets the board pass a special levy by resolution. The resolution states its purpose, total, method of apportionment and due dates. The purposes include an urgent repair, an operating shortfall and topping up the reserve fund per the plan. A capital improvement requires a special resolution. Ask whether a levy has been passed or discussed. The minutes often show it before any notice does.

5. Recent minutes

Minutes can show disputes, deferred repairs or planned projects that the study does not mention. Read at least a year of them.

Questions to ask

• When was the last study and when is the next one due?
• Is the plan funded as the study recommends?
• Has the corporation passed a special levy in the past few years?
• Are any large projects planned that the study does not show?
• What does the insurance certificate say and is a deductible large?

Your lawyer can explain the legal meaning of the answers. A mortgage lender may also ask to see parts of the file.

New developments

A new development works differently. Under section 12 of the Act the developer must deliver the plan, bylaws, budget and other documents to a purchaser before selling. The purchase agreement must carry a notice that the purchaser can rescind within 10 days of the later of receiving all of those documents and signing. This differs from a resale and is a lawyer’s matter. See the new construction guide for the process.

Where Derek fits

Derek holds the Certified Condominium Specialist designation from the Calgary Real Estate Board. He can help you ask for the right documents, point out what stands out in the minutes and the budget and suggest what to raise with your lawyer. He does not replace a lawyer or an engineer.

To plan a condo purchase, see the buyers page or contact Derek.