What are contingency/reserve funds for?
Every condominium project has a special fund which is set aside to meet operating costs. Each unit owns a portion e.g. 1.74% or 2.33% shared interest. When purchasing the condo you must buy the unit portion. The vendor may wish you to pay for the unit share, however, in many cases the vendor’s portion can be negotiated to be included in the offer to purchase and forms part of the purchase price. Make sure this concern is dealt with at the time the offer is written.
