P.T. from Erie County, New York writes: Dear Mister Condo, Regarding a condominium’s capital reserves: when an owner sells his unit, is he also entitled to receiving a credit from the purchaser for the amount of capital reserves (the pro-rata amount based on the total number of units) on account at time of the sale?…
Search Results for: reserve
Condo Reserve Fund Contribution versus Operating Fund Surplus
C.D. from Sarasota County, Florida writes: Dear Mister Condo, Florida condo. Budgeting – I understand there are 2 parts to the budget: a. the yearly operating budgetb. the reserve budget (spending plan). Our membership votes annually to approve the operating budget proposed by the board, and separately approves our reserves spending plan (we are “pooled reserves” although…
DIY Reserve Study for Smaller Condos
B.G. from Cuyahoga County, Ohio writes: Dear Mister Condo, We have a 10-unit, 6 single story building Condo. We have no other structures or facilities of any kind, just some simple landscaping. No common utilities. We have waived the Reserve fund requirement. We are reexamining what capital expense we might have, other than roof replacement,…
Condo Surplus of Funds Can be Transferred to Reserve Fund with Proper Vote of Owners
D.M. from Hartford County, Connecticut writes: Dear Mister Condo, Our small common interest property ended the fiscal year with a surplus of funds. How should these funds be accounted for? Can we simply vote to deposit to our long-term capital account? Mister Condo replies: D.M., I am happy to hear that your association had surplus…